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Breedon Aggregates aims to fund acquisitions

Aggregates group Breedon Aggregates has acquired a number of assets in Scotland from Aggregate Industries and is in advanced negotiations to acquire a number of assets from Marshalls.
The Scottish acquisition – worth £34.0m – will add six active quarries, four asphalt plants, seven ready-mixed concrete plants & two concrete block plants in Grampian, Tayside, Highlands and Hebrides.

It means the group mineral reserves and resources will more than double to almost 400m tonnes: enough to last the group 76 years at current extraction rates.

The company has conditionally raised £61.0m through a placing at 21p per share in order to fund these acquisitions.

Peter Tom CBE, Chairman, said, “These acquisitions are consistent with our long-term aim of becoming the lowest-cost operator in our chosen markets. We believe that they will put us in an even stronger position to benefit from any UK economic recovery.

“We will remain focused on further improving our performance and our management team has demonstrated its ability to deliver solid results in the most difficult market conditions. The previous acquisitions made by the Group have all added significant value to our core business and this gives us confidence in our ability to repeat this with future deals. Weather permitting, the Board is confident of making further progress in 2013.”

About Fiona Russell-Horne

Fiona Russell-Horne
Editor-in-Chief across the BMJ portfolio.

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