Breedon Aggregates has bought Hope Construction Materials for £336m, creating a “new, independent force” in the construction materials sector.
Hope chairman Amit Bhatia said the combined companies would have “superior growth prospects and greater opportunities” following the acquisition.
Breedon will have 310 operational sites across the UK, including a cement plant, 58 quarries, 26 asphalt plants and 211 ready-mixed concrete and mortar plants.
In the year ended 30 June 2015, Hope sold 1.6m tonnes of cement, 4.7m tonnes of aggregates and 2.3m cu m of concrete.
The company also generated revenues of £285.6m for the period and had an underlying EBITDA of £37m.
In the 12 months ended 30 June 2015, the new company would have reported pro forma revenue of £590.5m and pro forma underlying EBITDA of £85.1m.
Breedon is aiming to save £10m in costs by the third full year following the acquisition.
The cash consideration of £202m will be financed by a combination of a £300m revolving credit facility and a £41m equity placing with existing shareholders.
Upon completion, Mr Bhatia will become a non-executive director.
He said: “The combination with Breedon builds on that by creating a new, independent force in the construction materials sector with superior growth prospects and greater opportunities thanks to its broader product mix, strong customer offer and extended geographic footprint.”
Breedon executive chairman Peter Tom said: “We’re creating a vertically integrated business with one of the country’s largest cement plants, nearly 60 quarries, more than 200 ready-mixed concrete plants and around 750m tonnes of mineral reserves and resources – together with access for the first time to the rail-fed sector of the market.
“Under Amit’s leadership, Hope has delivered an outstanding performance over the last three years and has become a formidable competitor in the UK market.
“Together we will be an even stronger business, complementing one another geographically, operationally and culturally.”