Marshalls completes Breedon quarries deal

MARSHALLS, the Yorkshire-based hard landscaping specialist, has completed a deal to sell a number of its quarries to Breedon for £17.5m, rising to £19m if certain goals are met.

The assets going to Breedon Aggregates England include sand,gravel and aggregates quarries in Astley Moss near Wigan, Mold, North Wales, sClearwell, near Lydney, Gloucestershire, and Dunsville, near Hatfield, South Yorkshire.

These quarries currently supply aggregate materials to the construction sector, including materials used by Marshalls in the manufacture of its range of concrete products. For the year ended 31 December 2012, the operating profit generated from the operations carried on at these quarries was £1.1m, based on an annual turnover of £10m, of which £8.8m came from sales outside the group. As at 31 December 2012 the value of the gross assets disposed of was £14.9m.

Completion is subject to Breedon completing a placing announced on April 10 and the receipt of signed documentation incorporating landlords’ consents already given in principle relating to the assignment of the Astley Moss and Clearwell leases.

The proceeds of the sale will initially be used to reduce Marshalls’ Group borrowings.

Graham Holden, chief executive of Marshalls said: “Marshalls has been a niche player in the UK aggregates market for a number of years and, while the business is profitable, it remains ancillary to the core operations where our growth focus lies. The consideration received by Marshalls from the sale of these quarrying operations will initially be used to reduce net debt and we consider it is in the best interest of shareholders.”

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