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Breedon acquires Sherburn Minerals Group for £15.7m

Breedon has acquired buildings material business Sherburn Minerals Group for £15.7m.

Sherburn Minerals Group was bought with £9.5m of cash funded from Breedon’s existing resources with the assumption of £6m of debt.

A conditional payment of £200,000 will be made one year after the deal is complete.

Sherburn managing director and minority shareholder Paul Allison will remain with the business following the acquisition as a consultant.

Sherburn Minerals Group reported an EBITDA of £1.8m with a turnover of £16.1m in its financial report for the year to 31 March 2016.

However, it suffered a loss on ordinary activities before tax of around £153,000 over the same period.

The acquisition follows a Breedon trading update for the 10 months to 31 October 2016.

Total group revenue increased by 31 per cent to approximately £361m over the period.

Sales of aggregates increased by 25 per cent, with asphalt up 1 per cent and concrete up 96 per cent.

The increase in revenue and product sales follows Breedon’s merger with Hope (formerly Hope Construction Materials) in November for £336m. 

Breedon chief executive Pat Ward 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.”

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