8th Jan 2020 08:35
(Alliance News) - Breedon Group PLC said Wednesday it has agreed to acquire "certain assets and operations" in the UK from Mexican building materials company CEMEX SAB de CV for GBP178 million.
CEMEX's UK assets encompass approximately 100 active operations across six divisions located in Scotland, Wales, North-East England, Norfolk, the East Midlands and Yorkshire, the company said.
The construction materials company has agreed to acquire the assets and operations on a cash and debt free basis for GBP155 million in cash together with the assumption of GBP23 million of lease liabilities.
This will be financed by Breedon's existing GBP350 million revolving credit facility and the drawdown of GBP80 million through the exercise of an accordion option on the facility, the company noted.
Breedon said that acquisition is consistent with its strategy of acquiring earnings-enhancing aggregates-related businesses with strong potential for performance improvements and synergy benefits.
In the year ended December 31, 2018, CEMEX's UK assets generated revenue of GBP178 million and earnings before interest, tax, depreciation and amortization of GBP23 million.
Breedon said the combination of the CEMEX UK assets with its own will further enhance its position as a "leading construction materials group in Great Britain and Ireland".
Pat Ward, chief executive officer, said: "There is potential to drive significant performance improvements across these new assets and they will also strengthen our platform for further organic growth and bolt-on acquisitions."
Breedon shares were up 3.3% in London at 84.67 pence each on Wednesday.
By Loreta Juodagalvyte; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Breedon