Construction company Breedon has bought a slice of the aggregate operations of global materials giant Cemex for £155m cash and liabilities of £23m.
The sale consists of 49 ready-mix plants, 28 aggregate quarries, four depots, one cement terminal, 14 asphalt plants, and four concrete products operations, grouped across six divisions located in Scotland, Wales, North-East England, Norfolk, the East Midlands, and Yorkshire. It affects 650 staff across 100 active operations in the UK.
Part of Cemex’s paving solutions business in the UK, together with some inactive sites, are also included in the sale to Breedon.
Cemex will still retain a substantial operation in this country, including cement production, ready-mix concrete, asphalt, and paving solutions.
Pat Ward, Breedon’s group chief executive, said: “This is a unique opportunity to extend our national network through a single value-enhancing transaction, substantially increasing our footprint in several regions of Great Britain where we are currently underrepresented and adding 170 million tonnes of mineral reserves and resources. “
“It also delivers a step-change in the development of our national asphalt strategy. There is potential to drive significant performance improvements across these new assets and they will also strengthen our platform for further organic growth and bolt-on acquisitions.”
He said that the enlarged group’s total mineral reserves and resources would stand at more than 1 billion tonnes. Several greenfield sites are also included as part of the deal offering further potential for expansion.
Breedon Group is headquartered at Breedon on the Hill, Leicestershire, England. In 2016 it acquired Hope Construction Materials and in 2018 extended its operations into Ireland with the acquisition of Lagan Group.