21st Nov 2019 10:35
(Alliance News) - Construction materials firm Breedon Group PLC said Thursday it will form a joint venture with building materials company Robert Brett & Sons Ltd, which will trade as Capital Concrete Ltd.
To form the joint venture, Breedon will contribute three of its ready-mixed concrete assets in Cricklewood, Feltham and Enfield, as well as GBP3.1 million in cash.
These plants will be combined with Robert Brett's concrete operation in London, known as Capital Concrete, which currently operated seven ready-mixed concrete plants in the UK.
Breedon will hold a 43% stake in the joint venture, Robert Brett an equal holding, while the joint venture's senior management will keep the remaining 14%.
The deal is set to be completed on December 1.
"We have had a longstanding ambition to expand our footprint in the UK's largest construction materials market. This joint venture enables us to secure immediate critical mass in Greater London, in collaboration with an experienced local partner, with the potential to develop a business of significant scale in the capital over the next few years," said Chief Executive Pat Ward.
Shares in Breedon - which is headquartered in Leicestershire - were up 1.5% at 66.00 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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