Breedon Aggregates (BREE) is to acquire a collection of quarries, asphalt and ready-mix concrete plants from Aggregate Industries - part of the Swiss Holcim Group - for £34m. When complete, this will more than double the group's mineral reserves and resources, enough to last 76 years on current extraction rates. Last year, the assets for acquisition generated turnover of £34.2m and cash profits of £4.9m.
The group has also secured a deal with landscape products specialist Marshalls (MSLH) to acquire four quarries for £17.5m that will add a further 13m tonnes of mineral reserves, and the acquisition includes an option to acquire an additional 5m of reserves. On completion of the two deals, Breedon will operate 37 quarries, 22 asphalt plants, 48 concrete plants and two concrete block plants. To finance the acquisitions, it has raised around £61m through a share placing of 290m shares at 21p.
