Another acquisition for Breedon
Building materials group Breedon has agreed the purchase of Sherburn Minerals Group for £15.7m.
Sherburn operates four quarries and five ready-mixed concrete plants in Durham, Northumberland, North Yorkshire and Cumbria. It also distributes cementitious products from two import terminals at Blyth and Dundee.
It has in excess of 21 million tonnes of mineral reserves and resources, together with significant cement storage capacity at its two terminals. Sherburn reported an underlying EBITDA of £1.8m on revenues of £16.1m in the year to 31st March 2016.
Breedon chief executive Pat Ward said: “Following our acquisition of Hope earlier this year, which significantly expanded our geographical footprint in the north of England, Sherburn is a perfect infill acquisition for us. It gives us additional mineral reserves and access to new markets for our aggregates and concrete, as well as a first-rate workforce.
“It also complements our existing cement plant at Hope and will enable us to expand our cementitious business through the importation of cement and ground granulated blast-furnace slag (GGBS) through Sherburn’s two strategically located terminals in north-east England and eastern Scotland.”
Breedon also provided a trading update showing an increase in volumes and revenues for the former Breedon Aggregates business in the 10 months to 31st October 2016. Including Hope, group sales volumes of aggregates increased by 25%, asphalt by 1% and concrete by 96%.
Total group revenue for the 10-month period increased by 31% to £361m. The integration of Hope is progressing well, the company said, “with synergies coming through earlier than had previously been expected”. Underlying profits for the full year are therefore likely to be ahead of expectations, barring any December disaster.
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This article was published on 30 Nov 2016 (last updated on 30 Nov 2016).