Breedon Regulatory News (BREE)

30 November 2016

BREEDON GROUP PLC ("Breedon" or "the Group")

Acquisition of the Sherburn Minerals Group for £15.7m

Breedon, the UK's largest independent construction materials group, announces it has entered into a binding agreement to acquire the Sherburn Minerals Group ("Sherburn") for a total consideration of up to £15.7 million1.

Sherburn is a leading independent heavyside building materials business headquartered in County Durham, employing approximately 110 people. It operates four quarries and five ready-mixed concrete plants in County Durham, Northumberland, North Yorkshire and Cumbria. It also distributes cementitious products from two import terminals at Blyth near Newcastle and Dundee in eastern Scotland.

Sherburn reported an underlying EBITDA of £1.8 million on revenues of £16.1 million in the year to 31 March 2016. It has in excess of 21 million tonnes of mineral reserves and resources, together with significant cement storage capacity at its two terminals.

The purchase price will be satisfied by the payment of £9.5 million in cash, funded from the Group's existing resources, together with the assumption of £6.0 million of debt. A further conditional payment of £0.2 million is payable one year after completion. Following completion of the acquisition Paul Allison, Sherburn's current Managing Director and a minority shareholder, will remain with the business as a consultant.

Commenting on the acquisition Pat Ward, Breedon's Chief Executive, said: "Following our acquisition of Hope earlier this year, which significantly expanded our geographical footprint in the north of England, Sherburn is a perfect infill acquisition for us. It gives us additional mineral reserves and access to new markets for our aggregates and concrete, as well as a first-rate workforce.

"It also complements our existing cement plant at Hope and will enable us to expand our cementitious business through the importation of cement and ground granulated blast-furnace slag (GGBS) through Sherburn's two strategically located terminals in north-east England and eastern Scotland."

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1 Subject to completion adjustments.

The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

For further information:Breedon Group plcPat Ward, Group Chief Executive Rob Wood, Group Finance Director01332 694444 Stephen Jacobs, Head of Communications07831 764592Cenkos Securities plcMax Hartley (Nomad)020 7397 8925Peel Hunt (joint broker)Justin Jones / Mike Bell 020 7418 8900

Note to editors

Breedon Group plc is the UK's largest independent construction materials group. Following completion of the acquisition of Sherburn, Breedon will operate the country's largest cement plant, two cementitious import terminals, around 60 quarries, 30 asphalt plants, 200 ready-mixed concrete plants and three concrete products plants nationwide. The Group will employ around 2,300 people and have more than 750 million tonnes of mineral reserves and resources. Its strategy is to continue growing organically and through acquisition of businesses in the UK heavyside construction materials market.