BREEDON has agreed to acquire four quarries and an asphalt plant from Tarmac in a £16.5 million deal.
The move will be satisfied by the transfer to Tarmac of 27 of Breedon’s ready-mixed concrete plants and a payment £4.9 million cash payment.
The deal is subject to the approval of the Competition & Markets Authority (CMA).
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 to Exeter.
Breedon said the deal is in line with the firm’s strategy of expanding its aggregates portfolio. The move also streamlines Breedon’s ready-mix network.
Pat Ward, Breedon’s group chief executive said, “This deal brings significant benefits: it adds to our reserve base; it is margin-enhancing; it releases value from peripheral ready-mix 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.”