The Courier & Advertiser (Perth and Perthshire Edition)
Breedon and Tarmac trade assets in £16.5 million deal
Breedon will acquire four quarries and an asphalt plant
Construction material group Breedon has agreed a £16.5 million deal to acquire four quarries and an asphalt plant from Tarmac.
Breedon, whose Scottish headquarters is in Monifieth, will take over the Daviot Quarry in Inverness and quarries in Cumbria, North Wales and a site in West Wales which also has an asphalt plant.
In settlement of the agreed price, Breedon will transfer 27 of its readymixed concrete plants and a payment of £4.9m in cash to Tarmac, which is owned by global group CRH.
The ready-mixed concrete plants involved in the deal, which is conditional on approval by the Competition & Markets Authority (CMA), are in multiple locations extending from Dumfries to Exeter.
The deal is in line with Breedon’s strategy of expanding its aggregates portfolio.
It will add approximately 25 million tonnes to the group’s mineral reserves and resources, and further the development of its asphalt capacity.
Breedon said it would “streamline” the company’s ready-mix network.
The transaction is not expected to have a material impact on the group’s earnings.
Pat Ward, Breedon’s chief executive, said: “This deal brings significant benefits. It adds to our reserve base, it is margin-enhancing, it releases value from peripheral ready-mix plants and it will enable us to replace third-party aggregates providers with our own sources of supply.
“It is also a great example of how we can work with our larger peers – in this case CRH, one of the world’s most successful global building materials companies – to benefit customers and other stakeholders on both sides.”
The transaction is expected to close in the first half of 2018, subject to approval by the CMA.