Breedon completes acquisition of Humberside Aggregates
Breedon, the UK’s largest independent construction materials group, announced that it has today completed the acquisition of Humberside Aggregates Ltd (Humberside) for a total consideration of GBP9m, subject to completion adjustments.
Humberside is a leading independent sand and gravel quarry and aggregates merchanting business based at North Cave near Hull in east Yorkshire, employing around 30 people. It supplies a broad range of customers, including ready-mixed concrete and mortar producers, various government agencies, local authorities, and local and national building and civil engineering contractors.
In the year to 30 April 2017, Humberside reported an underlying EBITDA of GBP2.1m on revenues of GBP14.9m. It has approximately 3.1Mt of mineral reserves, with the potential to secure additional reserves in the future.
The purchase price is being satisfied by the payment of GBP8.3m in cash funded from the group’s existing resources, together with the assumption of GBP0.7m of debt.
Commenting on the acquisition Pat Ward, Breedon’s group CEO, said: “This acquisition provides Breedon Southern with a valuable source of aggregates in the important markets of East Yorkshire and Humberside, where we already operate a sizeable ready-mixed concrete business. It will enable us to create value by internalising the supply of sand and gravel to our network of readymix and mortar plants, whilst serving a strong existing customer base throughout the region.
“Humberside also operates a successful merchanting business, supplying limestone to builders’ merchants in the region. A proportion of this material currently comes from Breedon’s quarry at Holme Hall, giving us the opportunity to optimise these volumes and benefit from improved logistics planning."
