The deal with Aggregate Industries, announced last month, sees Breedon pay £34m for six active quarries, four asphalt plants, seven readymix concrete plants and two concrete block plants in Grampian, Tayside, Highlands and Hebrides.
The Marshalls deal, which was also announced last month, involved a cash consideration of £17.5m. The assets being sold comprise quarries that solely supply aggregates, sand and gravel. Marshalls has retained all of its dimensional stone quarries, some of which produce aggregate as an ancillary product. The quarries sold are the group's freehold and leasehold quarries at Clearwell, near Lydney, Gloucestershire, which produce primarily limestone aggregates and the sand and gravel quarries located at Dunsville, near Hatfield, South Yorkshire, Astley Moss in Greater Manchester and Mold in North Wales, which operates under the Lloyds Sand & Gravel trading name. Also included is an option to develop sand and gravel resources near Saredon, Staffordshire.
These quarries currently supply aggregate materials to the construction sector, including materials used by Marshalls in the manufacture of its range of concrete products. 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 £10m, of which £8.8m came from sales outside the group.
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