Breedon Group PLC Acquisition of Humberside Aggregates Limited (6667M)
01 August 2017 - 4:01PM
UK Regulatory
TIDMBREE
RNS Number : 6667M
Breedon Group PLC
01 August 2017
NEWS RELEASE
1 August 2017
BREEDON GROUP PLC ("Breedon" or "the Group")
Acquisition of Humberside Aggregates Limited for GBP9.0m
Breedon, the UK's largest independent construction materials
group, announces that it has today completed the acquisition of
Humberside Aggregates Limited ("Humberside") for a total
consideration of GBP9.0 million.*
Humberside is a leading independent sand & gravel quarry and
aggregates merchanting business based at North Cave near Hull in
East Yorkshire, employing around 30 people. It supplies a broad
range of customers including ready-mixed concrete and mortar
producers, various Government agencies, local authorities, and
local and national building and civil engineering contractors.
In the year to 30 April 2017, Humberside reported an underlying
EBITDA of GBP2.1 million on revenues of GBP14.9 million. It has
approximately 3.1 million tonnes of mineral reserves, with the
potential to secure additional reserves in the future.
The purchase price is being satisfied by the payment of GBP8.3
million in cash funded from the Group's existing resources,
together with the assumption of GBP0.7 million of debt.
Commenting on the acquisition Pat Ward, Breedon's Group Chief
Executive, said: "This acquisition provides Breedon Southern with a
valuable source of aggregates in the important markets of East
Yorkshire and Humberside, where we already operate a sizeable
ready-mixed concrete business. It will enable us to create value by
internalising the supply of sand and gravel to our network of
readymix and mortar plants, whilst serving a strong existing
customer base throughout the region.
"Humberside also operates a successful merchanting business,
supplying limestone to builders' merchants in the region. A
proportion of this material currently comes from Breedon's quarry
at Holme Hall, giving us the opportunity to optimise these volumes
and benefit from improved logistics planning.
"We look forward to welcoming all our new colleagues from
Humberside to the Breedon Group."
* Subject to completion adjustments
- ends -
The information contained within this announcement is deemed by
the Group to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014.
Note to editors
Breedon Group plc is the UK's largest independent construction
materials group. It operates the country's largest cement plant,
two cementitious import terminals, around 60 quarries, 30 asphalt
plants, 200 ready-mixed concrete plants and three concrete products
plants nationwide. The Group employs around 2,300 people and has
more than 750 million tonnes of mineral reserves and resources. Its
strategy is to continue growing organically and through acquisition
of businesses in the UK heavyside construction materials
market.
For further information:
Breedon Group plc
Pat Ward, Group Chief Executive
Rob Wood, Group Finance Director
01332 694444
Stephen Jacobs, Head of Communications
07831 764592
Cenkos Securities plc
Max Hartley (Nomad)
020 7397 8925
Numis Securities (joint broker)
Heraclis Economides/Ben Stoop
020 7260 1000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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