The new venture will trade as Capital Concrete, the current name of Brett’s existing London business.
The new Capital Concrete Limited will be 43% owned by Breedon Southern, 43% by Robert Brett & Sons and 14% by the management team.
Capital Concrete currently operates seven ready-mixed concrete plants in Bow, Croydon, Romford, Rainham, Wembley, Silvertown and Staines.
Breedon will contribute its plants in Cricklewood, Feltham and Enfield, together with £3.1m in cash.
Breedon chief executive Pat Ward explained: “We have had a longstanding ambition to expand our footprint in the UK’s largest construction materials market. This joint venture enables us to secure immediate critical mass in Greater London, in collaboration with an experienced local partner, with the potential to develop a business of significant scale in the capital over the next few years.
“We are very much looking forward to working with the outstanding management team in Capital Concrete and this also gives us a great opportunity to strengthen our relationship with Brett.”
Brett Group chairman Bill Brett said: “I am delighted that Breedon has become a joint venture partner in Capital Concrete as this consolidates our investment and forms part of the ongoing plans to develop and grow the business”.
Capital Concrete managing director Luke Smith added: “This is exciting news for Capital Concrete – we are strengthening our offering and will now have ten ready-mixed plants within the M25. We have a team with industry-leading experience and expertise and who are focussed on offering customers excellent service every day – this announcement shows our commitment to grow our geographic reach in London.”
Completion of the transaction is expected to take place on 1st December 2019.
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