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Breedon snaps up £34m of Aggregate’s assets

Breedon Aggregates has acquired £34 million of Aggregate Industries’ Scottish assets, and says it is in the “advanced stages” of a further acquisition worth up to £19m.

The Scottish deal will add around 20 per cent to group revenue and 24 per cent to group EBITDA in 2012.

It will add six active quarries, four asphalt plants, seven ready-mixed concrete plants and two concrete block plants in Grampian, Tayside, Highlands and Hebrides, to the Breedon portfolio.

Breedon will also see its mineral reserves and resources more than double to £400m tonnes – enough to last 76 years at current rates.

It is part of a £61m acquisition fund raised by the business through a placing at 21p per share.

Possible acquisitions in England and Wales could also add a further four quarries and up to 13m tonnes of mineral reserves and resources.

The group says the acquisitions will take the group into new geographical markets.

Chairman Peter Tom said: “These acquisitions are consistent with our long-term aim of becoming the lowest-cost operator in our chosen markets. We believe that they will put us in an even stronger position to benefit from any UK economic recovery.

“We will remain focused on further improving our performance and our management team has demonstrated its ability to deliver solid results in the most difficult market conditions. 

“The previous acquisitions made by the group have all added significant value to our core business and this gives us confidence in our ability to repeat this with future deals. Weather permitting, the board is confident of making further progress in 2013.”

Aggregate Industries says the deal, subject to ratification by Breedon shareholders, is expected to come through before the end of April.

Aggregate will then use the revenue to focus on its core operations across Scotland’s Central Belt, and at Europe’s largest granite super-quarry in Glensanda.

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