Breedon Group PLC BREEDON COMPLETES ASSET SWAP WITH TARMAC (1608T)
July 02 2018 - 2:00AM
UK Regulatory
TIDMBREE
RNS Number : 1608T
Breedon Group PLC
02 July 2018
2 July 2018
Breedon Group plc
Breedon completes ASSET SWAP with Tarmac
Further to the announcements made on 13 December 2017 and 26
April 2018, Breedon Group is pleased to announce that it has
completed an asset swap with Tarmac which secures 25 million tonnes
of additional mineral reserves and around 50,000 tonnes of
additional annual asphalt capacity in four key UK locations.
The Group has acquired from Tarmac three quarries near
Inverness, Penrith and Wrexham, together with a quarry and asphalt
plant near Porthamadog, in exchange for 23 of its ready-mixed
concrete plants and a payment to Tarmac of GBP6.1 million in
cash.
Commenting on today's announcement Pat Ward, Breedon's Group
Chief Executive, said:
"This is an excellent, margin-enhancing deal for us and fully in
line with our strategy of strengthening our asset base and
improving the quality of our earnings.
"It gives us a significant quantity of high-quality mineral
reserves, including a scarce source of high PSV stone and a new
asphalt plant in West Wales capable of producing up to 50,000
tonnes of material a year. It also gives us a significant new
source of hardstone in the heartland of our Scottish business, at
Daviot Quarry near Inverness where we already have an asphalt
plant.
"At the same time it streamlines our concrete network and
enables us to release value by relinquishing peripheral plants
which we couldn't supply internally and which in many cases were on
short-term leases.
"This means we have become much less dependent on third-party
aggregates. We can now supply more of our concrete and asphalt
plants with our own minerals, with the secure backing of nearly 900
million tonnes of reserves and resources across the UK and
Ireland.
"It's also a great example of how we can work with our larger
peers - in this case Tarmac, a subsidiary of one of the world's
most successful global building materials companies - to benefit
customers and other stakeholders on both sides of the deal."
Following today's deal, Breedon operates more than 70 quarries,
40 asphalt plants and around 180 ready-mixed concrete plants,
extending from the north of Scotland to the west of Ireland and the
south-east of England.
Completion of this transaction follows the conclusion of
investigations by the Competition and Markets Authority, which has
accepted remedies proposed by Tarmac - and accepted by Breedon - in
relation to any potential competition concerns arising from it.
- ends -
Notes to editors
Breedon Group plc is a leading construction materials group in
the UK and Ireland. It currently operates two cement plants, more
than 70 quarries, 40 asphalt plants, around 180 ready-mixed
concrete and mortar plants, nine concrete and clay products plants,
four contract surfacing businesses, six import/export terminals and
two slate production facilities.
The group employs nearly 3,000 people and has nearly 900 million
tonnes of mineral reserves and resources. The group's strategy is
to continue growing organically and through the acquisition of
businesses in the heavyside construction materials market.
Tarmac assets acquired in this transaction:
Daviot Quarry, Inverness
Low Plains Quarry, Penrith
Borras Quarry, Wrexham
Minffordd Quarry & Asphalt Plant, near Porthmadog
Breedon ready-mixed concrete plants divested in this
transaction:
Alrewas Llanelli
Banbury Llynclys
Boroughbridge Meriden
Bournemouth Pembroke
Briton Ferry Portsmouth
Cardigan Scorton
Carmarthen Shawell
Colchester Southampton
Dumfries Stancombe
Exeter Tredegar
Halecombe Wellington
Llandybie
For further information:
Breedon Group plc Cenkos Securities plc
Pat Ward, Group Chief Executive Max Hartley (NOMAD & joint broker)
Rob Wood, Group Finance Director 020 7397 8900
01332 694444
Numis Securities (joint broker)
Stephen Jacobs, Head of Communications Ben Stoop/Heraclis Economides
07831 764592 020 7260 1000
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END
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