Construction materials group Breedon has announced that it has completed the acquisition of Humberside Aggregates in a deal totalling £9 million.
The Hull-based independent sand and gravel quarry and aggregates merchanting business currently employs around 30 people and supplies a broad range of customers including ready-mixed concrete and mortar suppliers, local authorities and civil engineering contractors.
Humberside Aggregates reported an underlying EBITA (earnings before interest, tax, depreciation and amortisation) of £2.1 million on revenues of £14.9 million in the year ending April 30 2017. The firm has approximately 3.1 million tonnes of mineral reserves.
The purchase price is being satisfied by the payment of £8.3 million in cash, with the assumption of £0.7 million of debt.
Pat Ward, group chief executive at Breedon, commented, “This acquisition provides Breedon Southern with a valuable source of aggregates in the important markets of East Yorkshire and Humberside, where we already operate a sizeable ready-mixed concrete business. It will enable us to create value by internalising the supply of sand and gravel to our network of ready-mix and mortar plants, whilst serving a strong existing customer base throughout the region.
“Humberside also operates a successful merchanting business, supplying limestone to builders’ merchants in the region. A proportion of this material currently comes from Breedon’s quarry at Holme Hall, giving us the opportunity to optimise these volumes and benefit from improved logistics planning.
“We look forward to welcoming all our new colleagues from Humberside to the Breedon Group.”