UK aggregates business Breedon Aggregates has acquired Huntsman’s Quarries Limited based in the North Cotswolds for £15 million.
A company statement said the acquisition gives them “access to the affluent and buoyant Cotswolds market” as well as a new presence in the north Worcestershire concrete market.
The consideration will be settled in cash from the Company’s existing resources and Breedon will also assume Huntsmans’ debt of up to £2 million.
Huntsmans 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 £8 million with EBITDA of approximately £2 million. The business has reported year-on-year revenues ahead in the first quarter of 2014.
Commenting on the acquisition Breedon’s chairman, Peter Tom CBE, said: “Huntsmans is a well-run business making good margins in a strong local 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.
“This is exactly the kind of acquisition we’re always on the lookout for. 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.”