Breedon paid £13.5m to the Sciarrillo brothers, who set up the family-run business 19 years ago in Llay near Wrexham.
Roadway specialises in local authority term maintenance, minor road maintenance schemes and associated civil engineering works. The purchase of the business coincides with the opening of a new asphalt plant on its Wrexham site. Key management will remain with the business.
The total purchase price, subject to completion adjustments, comprises an initial £10.8m payment, and up to £2.7m deferred, depending on performance over the next five years.
In the year to 31st July 2018 – before the introduction of its new asphalt production capability – Roadway reported underlying Ebitda of £1.3m and profit before tax of £1.3m on revenue of £5.1m.
Mike Pearce, managing director of Breedon Southern, said: "This acquisition significantly strengthens our contract surfacing operations and establishes Breedon as a fully integrated business in North Wales.
"The Wrexham plant will expand our asphalt capacity in the region, complementing our units at Dowlow, Minffordd and Leaton, and enable us to offer a full asphalt supply and lay service throughout North Wales, Shropshire, Cheshire and Merseyside. Roadway also provides an additional route to market for aggregates from our quarries at Minffordd, Borras, Denbigh and Leaton.
"We are particularly pleased that Roadway's management team has committed to remain with the business."
Breedon chief executive Pat Ward added: "This is a further step in our regional expansion, acquiring an integrated asphalt and contract surfacing business in an area of the UK where we have been seeking to strengthen our presence for some time. It demonstrates our consistent ability to secure value-enhancing acquisitions and we remain confident of being able to continue adding value in this way."