Marshalls in negotiation to sell quarries

Hard landscaping specialist Marshalls is in advanced discussions to sell a number of its aggregate quarries to Breedon Aggregates England Limited.
Should the deal go ahead, it will be worth a cash consideration on completion of £17.5 million. The final consideration will be up to £19.0 million dependent on certain subsequent conditions.

The assets comprise quarries solely supplying aggregates, sand and gravel. Marshalls would retain all of its dimensional stone quarries, some of which produce aggregate as an ancillary product.

The quarries that would be affected, subject to the discussions, are the Group’s freehold and leasehold quarries at Clearwell, near Lydney, Gloucestershire, which produce primarily high quality limestone aggregates and the Group’s sand and gravel quarries located at Dunsville, near Hatfield, South Yorkshire, Astley Moss in Greater Manchester and Mold in North Wales which operates under the Lloyds Sand and Gravel trading name and the business carried on from these quarries.

The discussions also include an option to develop sand and gravel resources near Saredon, Staffordshire.

If completed, the proceeds of the sale would initially be used to reduce Marshalls’ Group borrowings.

Graham Holden, Chief Executive, said: “Marshalls has been a niche player in the UK aggregates market for a number of years and, while the business is profitable, it remains ancillary to the core operations where our growth focus lies. If completed, the consideration received by Marshalls from the sale of these quarrying operations would initially be used to reduce net debt and we consider that such a transaction would be in the best interest of shareholders.”