Construction materials group snaps up quarry operator for £15m

CONSTRUCTION materials group Breedon has bought quarry operator Sherburn Minerals Group in a deal worth £15.7m.

Sherburn is a heavyside building materials business headquartered in County Durham, employing 110 people. It operates four quarries and five ready-mixed concrete plants in County Durham, Northumberland, North Yorkshire and Cumbria. It also distributes cement from two import terminals at Blyth near Newcastle and Dundee in eastern Scotland.

Sherburn reported an underlying EBITDA of £1.8m on revenues of £16.1m in the year to 31 March 2016. It has in excess of 21m tonnes of mineral reserves and resources, together with significant cement storage capacity at its two terminals.

Following completion of the acquisition Paul Allison, Sherburn’s current managing director and a minority shareholder, will remain with the business as a consultant.

Pat Ward, Breedon’s chief executive, said: “Following our acquisition of Hope earlier this year, which significantly expanded our geographical footprint in the north of England, Sherburn is a perfect infill acquisition for us. It gives us additional mineral reserves and access to new markets for our aggregates and concrete, as well as a first-rate workforce.

“It also complements our existing cement plant at Hope and will enable us to expand our cementitious business through the importation of cement and ground granulated blast-furnace slag (GGBS) through Sherburn’s two strategically located terminals in north-east England and eastern Scotland.”