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Breedon to acquire quarries and asphalt plant from Tarmac

By BFN News | 08:12 AM | Wednesday 13 December, 2017


Breedon has agreed to acquire four quarries and an asphalt plant from Tarmac - a CRH company - for a total consideration of £16.5 million, to be satisfied by the transfer to Tarmac of 27 of Breedon's ready-mixed concrete plants and a payment of £4.9m in cash. The deal is conditional on approval by the Competition & Markets Authority. The operations to be acquired by Breedon comprise quarries in Scotland, Cumbria and North Wales, together with a quarry and asphalt plant in West Wales. The ready-mixed concrete plants to be divested by Breedon are in multiple locations extending from Dumfries in Scotland to Exeter in Devon. Breedon said the deal was in line with its strategy of expanding its aggregates portfolio, in this case adding approximately 25 million tonnes to the group's mineral reserves and resources, and furthering the development of its asphalt capacity. It also streamlines Breedon's readymix network. Breedon said the transaction was not expected to have a material impact on the group's earnings. Breedon group chief executive Pat Ward said: 'This deal brings significant benefits: it adds to our reserve base; it is margin-enhancing; it releases value from peripheral readymix plants; and it will enable us to replace third-party aggregates providers with our own sources of supply. 'It is also a great example of how we can work with our larger peers - in this case CRH, one of the world's most successful global building materials companies - to benefit customers and other stakeholders on both sides.' At 8:12am: (LON:BREE) Breedon Aggregates share price was +0.38p at 84.5p Story provided by StockMarketWire.com

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