Acquisition

RNS Number : 8792K

Breedon Aggregates Ld

22 July 2011

 



 22 July 2011

Breedon Aggregates completes first bolt-on acquisition

Purchase of the business and assets of C&G Concrete Limited

(in administration)

Breedon Aggregates Limited, the UK's largest independent aggregates producer, has reached agreement to acquire (through a wholly owned subsidiary) the business and assets of C&G Concrete Limited (in administration) ("C&G") from the joint administrators for £10.15 million (including deferred consideration).

C&G operates three sand and gravel quarries and 13 ready-mixed concrete and mortar plants in Lincolnshire, Cambridgeshire and Humberside.  In 2010 C&G produced 330,000 tonnes of aggregates and 155,000 cubic metres of concrete, mortar and screeds.  Sales revenue in 2010 was approximately £12 million.

The acquired assets include a substantial and strategically valuable sand and gravel operation at Norton Bottoms in Lincolnshire.  C&G also owns a number of other assets, including a farm of 286 acres with planned mineral deposits near Woodhall Spa in Lincolnshire.  In total, C&G has planned mineral reserves of 6.6 million tonnes and potential further resources of 17.6 million tonnes. 

The acquisition is an excellent geographical and operational fit for Breedon Aggregates, linking the Company's existing operations in the East Midlands and East Anglia and significantly enhancing its reserves and the scale of its ready-mixed concrete business.

The consideration will be settled in cash from the Company's existing resources.

As part of the arrangements, Breedon Aggregates has also agreed to acquire certain assets from a related company, F H Gilman & Co (in administrative receivership).

Commenting on the acquisition Peter Tom CBE, executive chairman, said:

"We are delighted to have secured such a high quality business as our first bolt-on acquisition and look forward to welcoming C&G's employees into the group.  C&G has a strong market position and excellent asset base in Lincolnshire and South Humberside and we see significant growth potential in the business.  We also expect to be able to deliver useful synergy savings and operational improvements following the acquisition.

"We continue to review a number of other acquisition opportunities as we seek to build on the excellent platform we have created in Breedon Aggregates."

Commenting on the sale Joint Administrator, Eddie Williams, said:

"We are pleased to have secured a sale of the C&G operations to Breedon Aggregates that not only protects the employment base of the Company, but also secures value for the creditors of C&G.  I would like to take the opportunity to thank the employees, customers and suppliers for their support over the last few months and look forward to seeing the C&G business continue to thrive as part of the Breedon Aggregates Group."

More about C&G Concrete

C&G was founded in Newark, Nottinghamshire in 1958 and expanded into Lincolnshire and South Humberside during the 1970s and '80s. It is an integrated aggregates and ready-mixed concrete business which also produces mortar and screeds.  It employs around 130 people.

It owns three operational sand and gravel quarries at Kettleby, Kirkstead and Norton Bottoms in Lincolnshire.  It also operates 13 ready-mixed concrete and mortar plants in the region, extending from Peterborough in the south to Grimsby and Elsham in the north.  Its fleet of over 100 vehicles includes tippers, artics, mixers and tankers.

The business was put into administration on 16 May 2011.

More about Breedon Aggregates

Breedon Aggregates Limited is the largest independent aggregates group in the UK, after the five global majors.  Following the acquisition of C&G Concrete, it operates 26 quarries, 18 asphalt plants and 40 concrete (including mortar) plants in England and Scotland and employs approximately 830 people.  The group has nearly 200 million tonnes of mineral reserves and resources in the UK.  Breedon Aggregates' strategy is to grow through consolidation of the UK heavyside building materials sector.

Enquiries:

Breedon Aggregates Limited	Tel: [phone]
Peter Tom, Executive Chairman Simon Vivian, Group Chief Executive Ian Peters, Group Finance Director	Tel: [phone]                    Tel: [phone]
Stephen Jacobs, Head of Communications	Tel: [phone]
Cenkos Securities plc Nicholas Wells/Max Hartley	Tel: [phone]

 

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