Breedon Aggregates Ltd has bought the collapsed C&G Concrete Ltd for £10.15 million, saving 130 jobs in the process.
The UK’s largest independent aggregates producer said it has reached agreement to acquire the business and assets of C&G, which went into administration in May.
Peter Tom CBE, Breedon’s executive chairman, said: “We are delighted to have secured such a high quality business as our first bolt-on acquisition and look forward to welcoming C&G’s employees into the group.
“We continue to review a number of other acquisition opportunities as we seek to build on the excellent platform we have created in Breedon Aggregates.”
The acquired assets include a valuable sand and gravel operation at Norton Bottoms in Lincolnshire. As part of the arrangements, Breedon Aggregates has also agreed to acquire some assets from a related company in receivership, F H Gilman & Co.
The news comes as Breedon reports an increase in group revenue to £84.7m for the first half of 2011, up 17.5 per cent on the first six months of 2010.* Aggregates volumes are up 8 per cent, asphalt volumes up 12 per cent and concrete volumes have increased 28 per cent.
Profit before tax was at £0.5m (£0.38m loss in same period in 2010), with underlying operating profit at £2.9m (0.4 loss in H1 2010). Net debt remains at £92m.
The company said the improved trading performance was driven by a strong first quarter, helped by work carried over from the bad weather at the end of 2010. April and May were quieter months due to the public holidays, but activity levels picked up in June.
The hike in energy costs, driven by higher oil prices, resulted in higher bitumen, gas oil and transport costs. This sparked a rise in selling prices, which allowed a modest improvement in margins.
Looking ahead, Mr Tom said: “While the year on year improvements in the first six months will not be sustained at the same level in the second half of 2011, we are confident of delivering a strong performance for the year, comfortably in line with market expectations”
* Breedon Aggregates Ltd was created in September 2010 following a reverse takeover of Breedon Holdings Ltd by Marwyn Materials Ltd.