UK building materials suppliers, Breedon Group and Tarmac, a subsidiary of CRH, have agreed to swap a number of assets, including quarries, ready-mixed concrete plants, and asphalt plants.
Under the deal, Breedon Group will acquire four quarries in Scotland, Cumbria, and north Wales, and an asphalt plant in west Wales. The deal is valued at £16.5 million and will be satisfied by the transfer of 27 ready-mixed concrete plants to Tarmac, as well as the payment of £4.9 million in cash.
The ready-mixed concrete plants are located in a range of locations between Dumfried in Scotland to Exeter in the southwest of England.
The deal will add about 25 million t to Breedon’s mineral reserves and resources, the company said in a press release, as well as furthering the development of its asphalt capacity.
“This deal brings significant benefits,” said Pat Ward, Breedon Group’s CEO. “It adds to our reserve base; it is margin enhancing; it releases value from peripheral ready-mixed concrete plants; and it will enable us to replace third-party aggregates providers with our own sources of supply.”
The transaction is expected to close in 1H18, subject to approval by the UK’s competition regulator, the Competition & Markets Authority.
Read the article online at: https://www.worldcement.com/europe-cis/14122017/breedon-group-and-tarmac-trade-assets/