2nd Jul 2018 09:33
LONDON (Alliance News) - Construction materials company Breedon Group PLC said on Monday it has completed the asset swap deal with FTSE 100-listed CRH PLC subsidiary Tarmac.
Breedon has acquired four quarries and an asphalt plant in the UK, in exchange for 23 ready-mixed concrete plants and a payment of GBP6.1 million. The transaction has secured 25 million tonnes of additional mineral reserve and 50,000 tonnes of annual asphalt capacity.
"This is an excellent, margin-enhancing deal for us and fully in line with our strategy of strengthening our asset base and improving the quality of our earnings. It gives us a significant quantity of high-quality mineral reserves, including a scarce source of high PSV stone and a new asphalt plant in West Wales capable of producing up to 50,000 tonnes of material a year," said Chief Executive Pat Ward.
"It also gives us a significant new source of hardstone in the heartland of our Scottish business, at Daviot Quarry near Inverness where we already have an asphalt plant," Ward added.
Shares in Breedon Group were down 0.7% at 81.66 pence on Monday.
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