Breedon announced earlier this week the £34m purchase of a clutch of Scottish assets from Aggregate Industries. Advanced discussions with Marshalls were also revealed at that time too.
Marshalls is keeping its dimensional stone quarries, some of which produce aggregate as an ancillary product.
Breedon will pay £17.5m, potentially rising to £19m, for:
- Clearwell Quarries, near Lydney in the Forest of Dean, Gloucestershire. This produces high-quality limestone aggregates.
- Sand & gravel quarries at: Dunsville, near Hatfield in South Yorkshire; at Astley Moss in Greater Manchester; and in Mold, North Wales, (which operates under the Lloyds Sand and Gravel trading name).
- Also included is an option to develop sand and gravel resources near Saredon, Staffordshire.
For the year ended 31 December 2012, the operating profit generated from the operations carried on at these quarries was £1.1m, based on an annual turnover of £10.0m. Marshalls own block production accounted for £1.2m of the turnover.
As at 31 December 2012 the value of the gross assets disposed of was £14.9m.
Marshalls will uses the proceeds of the sale to reduce borrowings.
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