1st Oct 2019 09:55
(Alliance News) - Aggregates firm Breedon Group PLC said Tuesday it acquired North Wales-focused asphalting firm Roadway Civil Engineering & Surfacing Ltd for up to GBP13.5 million.
Breedon will pay an initial GBP10.8 million in cash, with a further GBP2.7 million deferred consideration payable over the following five years dependent on performance. All key management at the currently family-owned Roadway will remain at the business.
For the year ended July, Roadway generated GBP1.3 million pretax profit on revenue of GBP5.1 million. Breedon said these results were achieved prior to the introduction of its new asphalt production plant in Wrexham.
In 2018, Breedon generated GBP64.6 million pretax profit on revenue of GBP862.7 million.
"This is a further step in our regional expansion, acquiring an integrated asphalt and contract surfacing business in an area of the UK where we have been seeking to strengthen our presence for some time," Breedon Chief Executive Officer Pat Ward said. "It demonstrates our consistent ability to secure value-enhancing acquisitions and we remain confident of being able to continue adding value in this way."
Shares in Breedon were 0.1% higher at 65.36 pence in London on Tuesday.
By Ahren Lester; [email protected]
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