Breedon Aggregates enters Worcestershire concrete market via acquisition

BREEDON Aggregates, the UK’s largest independent aggregates business, has acquired Gloucestershire’s Huntsman’s Quarries for £15m.

The deal sees Derbyshire-based Breedon attain a presence in the north Worcestershire concrete market via Huntsmans’ ready-mixed concrete plant at Evesham.
 
Huntsmans also operates a substantial limestone quarry and ready-mixed concrete plant at Naunton, between Cheltenham and Chipping Norton, and a fleet of 20 haulage and mixer trucks. 

It owns three further quarries near Naunton which are currently dormant. 

In 2013 the business sold more than 300,000 tonnes of aggregates and generated sales of approximately £8m with EBITDA of approximately £2m. The business has performed well in 2014 with year-on-year revenues ahead in the first quarter. 
 
In total, Naunton has planned mineral reserves of 4m tonnes and potential further resources of 6m tonnes. The mineral produced by Huntsmans is a high quality, harder-than-average Cotswold stone which is ideal for natural walling and is also particularly suitable for Type 1 sub-base and ready-mixed concrete.  In addition, the business supplies natural roofing slate, decorative blocks, agricultural lime and blue clay.
 
The acquisition fee will be settled in cash from Breedon’s existing resources and it will also assume Huntsmans’ debt of up to £2m.
 
Breedon’s chairman Peter Tom CBE said: “Huntsmans is a well-run business making good margins in a strong local market.  We see great potential both for the quarry and for the newly refurbished concrete plant at Evesham, which has just reopened, and also expect to secure some useful synergies and cost savings.
 
“This is exactly the kind of acquisition we’re always on the lookout for.  It builds our regional presence, extends our product range and gives us access to new markets, whilst adding further value for our shareholders. 

“The company is continuing to pursue other similar opportunities elsewhere in the UK.”