Last checked at 12 Apr 2013 07:00
News release
12 April 2013
Breedon Aggregates Limited
("Breedon Aggregates" or the "Group")
Breedon Aggregates agrees acquisition of assets from Marshalls PLC
Further to the announcement made by Breedon Aggregates, and separately by Marshalls plc, on 10 April 2013, the Group is pleased to announce that Breedon Aggregates England Limited has now reached agreement and exchanged contracts to purchase certain assets from Marshalls Mono Limited ("Marshalls") for an initial consideration of £17.5 million in cash. The final consideration will be up to £19.0 million, dependent on certain conditions subsequent.
The assets to be acquired comprise freehold and leasehold quarries at: Clearwell, near Lydney, Gloucestershire, which produces primarily high quality limestone aggregates; and sand and gravel quarries located at Dunsville, near Hatfield, South Yorkshire; Astley Moss in Greater Manchester; and Mold in North Wales, which operates under the Lloyds Sand and Gravel trading name (together, the "Quarries"). The acquisition agreement also includes an option to develop sand and gravel resources near Saredon, Staffordshire. The Quarries will provide an additional 13 million tonnes of mineral reserves and resources to the Group and the potential for additional mineral prospects of 5 million tonnes.
The Quarries represent a move into new but contiguous markets for the Group. As announced previously, aggregate production from the Quarries was 0.9 million tonnes in 2012, generating revenue of approximately £10 million and an EBITDA of £2.3 million.
The acquisition remains conditional, inter alia, upon the passing of the resolutions at the Extraordinary General Meeting of Breedon Aggregates to be held at the offices of Travers Smith LLP, 10 Snow Hill, London EC1A 2AL on 26 April 2013 at 11:00am and certain other conditions precedent.
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For further information:
Breedon Aggregates Limited 01332 694010
Peter Tom CBE, Executive Chairman
Simon Vivian, Group Chief Executive
Ian Peters, Group Finance Director
Stephen Jacobs, Head of Communications 07831 764592
Cenkos Securities 020 7397 8900
Max Hartley, Nicholas Wells
More about Breedon Aggregates
Breedon Aggregates Limited is the largest independent aggregates group in the UK. Following the recent acquisition announcements (if both are completed), it will operate 37 quarries, 22 asphalt plants, 48 concrete (including mortar) plants and two concrete block plants in England, Scotland and Wales and will employ approximately 1,000 people. The Group will have approximately 400 million tonnes of mineral reserves and resources in the UK. Breedon Aggregates' strategy is to continue growing through consolidation of the UK heavyside building materials sector.