2nd Jun 2014 06:49
LONDON (Alliance News) - Breedon Aggregates Ld Monday said it has acquired Huntsman's Quarries Ltd, an aggregates company based in the North Cotswolds for GBP15.0 million in cash.
Following the acquisition, Breedon has 42 active quarries, 22 asphalt plants and 53 ready-mixed concrete and mortar plants stretching from the Hebrides in northern Scotland to Lydney in Gloucestershire, England.
In addition to the cash payment, Breedon said it will assume Huntsman's Quarries GBP2.0 million in debt.
Chairman Peter Tom said Huntsman's Quarries is exactly the kind of acquisition Breedon is always on the lookout for, calling it a well-run business making good margins in a strong market.
"We see great potential both for the quarry and for the newly refurbished concrete plant at Evesham, which has just reopened, and also expect to secure some useful synergies and cost savings," Tom said in a statement. "It builds our regional presence, extends our product range and gives us access to new markets, whilst adding further value for our shareholders. The company is continuing to pursue other similar opportunities elsewhere in the UK," the chairman added.
Breedon, which is targeting further growth through consolidation in the heavyside building materials sector, said the acquisition gives it access to the "affluent and buoyant" Cotswolds market, together with a new presence in the north Worcestershire concrete market.
Huntsman's Quarries operates a limestone quarry and ready-mixed concrete plant at Naunton, between Cheltenham and Chipping Norton, together with a second ready-mixed concrete plant at Evesham in Worcestershire and a fleet of 20 haulage and mixer trucks. It owns three further quarries near Naunton which are currently dormant.
In 2013 the business sold over 300,000 tonnes of aggregates and generated sales of approximately GBP8.0 million with earnings before interest, tax, depreciation and amortisation of about GBP2.0 million, according to Breedon, which added that the business's year-on-year revenues are ahead in the first-quarter of 2014.
Breedon Aggregates will publish its interim results for the six months ended June 30 on July 17.
By Samuel Agini; [email protected]; @samuelagini
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