Under the deal, Breedon Group will acquire four quarries in Scotland, Cumbria, and north Wales, and an asphalt plant in west Wales. The deal is valued at £16.5 million and will be satisfied by the transfer of 27 ready-mixed concrete plants to Tarmac, as well as the payment of £4.9 million in cash.
The ready-mixed concrete plants are located in a range of locations between Dumfried in Scotland to Exeter in the southwest of England.
The deal will add about 25 million t to Breedon’s mineral reserves and resources, the company said in a press release, as well as furthering the development of its asphalt capacity.
“This deal brings significant benefits,” said Pat Ward, Breedon Group’s CEO. “It adds to our reserve base; it is margin enhancing; it releases value from peripheral ready-mixed concrete plants; and it will enable us to replace third-party aggregates providers with our own sources of supply.”
The transaction is expected to close in 1H18, subject to approval by the UK’s competition regulator, the Competition & Markets Authority.
