Breedon Group PLC Acquisition (4831Q)
30 November 2016 - 6:00PM
UK Regulatory
TIDMBREE
RNS Number : 4831Q
Breedon Group PLC
30 November 2016
30 November 2016
BREEDON GROUP PLC ("Breedon" or "the Group")
Acquisition of the Sherburn Minerals Group for GBP15.7m
Breedon, the UK's largest independent construction materials
group, announces it has entered into a binding agreement to acquire
the Sherburn Minerals Group ("Sherburn") for a total consideration
of up to GBP15.7 million(1) .
Sherburn is a leading independent heavyside building materials
business headquartered in County Durham, employing approximately
110 people. It operates four quarries and five ready-mixed concrete
plants in County Durham, Northumberland, North Yorkshire and
Cumbria. It also distributes cementitious products from two import
terminals at Blyth near Newcastle and Dundee in eastern
Scotland.
Sherburn reported an underlying EBITDA of GBP1.8 million on
revenues of GBP16.1 million in the year to 31 March 2016. It has in
excess of 21 million tonnes of mineral reserves and resources,
together with significant cement storage capacity at its two
terminals.
The purchase price will be satisfied by the payment of GBP9.5
million in cash, funded from the Group's existing resources,
together with the assumption of GBP6.0 million of debt. A further
conditional payment of GBP0.2 million is payable one year after
completion. Following completion of the acquisition Paul Allison,
Sherburn's current Managing Director and a minority shareholder,
will remain with the business as a consultant.
Commenting on the acquisition 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."
- ends -
(1) Subject to completion adjustments.
The information contained within this announcement is deemed by
the Group to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014.
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
Peel Hunt (joint broker)
Justin Jones / Mike Bell 020 7418 8900
Note to editors
Breedon Group plc is the UK's largest independent construction
materials group. Following completion of the acquisition of
Sherburn, Breedon will operate 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 will employ around 2,300 people and
have 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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November 30, 2016 02:00 ET (07:00 GMT)