UK: Breedon revenue up 31% and it buys Sherburn Minerals

UK-based Breedon reported revenue for the first 10 months of 2016 up 31% year-on-year to approximately $450m (£361m).

reedon has also purchased Sherburn Minerals Group
Breedon has purchased Sherburn Minerals Group

The integration of Hope acquired earlier this year produced “synergies coming through earlier than had previously been expected” Breedon said in a statement.

Including Hope, Breedon’s sales volumes of aggregates increased by 25%, asphalt by 1% and concrete by 96%.

Breedon  has also purchased Sherburn Minerals Group for $19.5m (£15.7m).

Sherburn supplies aggregates and ready-mixed concrete, and cement from two import terminals, in Blyth near Newcastle and Dundee in eastern Scotland.

Breedon acquires Sherburn Minerals for £15.7m
Breedon, the UK’s largest independent construction materials group,is to acquire Sherburn Minerals Group for $19.5m (£15.7m). Sherburn, based in County Durham, England, employs 110 people and operates four quarries and five ready-mixed concrete plants in County Durham, Northumberland, North Yorkshire and Cumbria.  It also distributes cementitious products from two import terminals at Blyth near Newcastle and Dundee in eastern Scotland.

Sherburn reported an underlying EBITDA of £1.8 million on revenues of $2.2m (£16.1m) in the year to 31 March 2016.  It has over 21 million tonnes of mineral reserves and resources. The purchase price will be satisfied by the payment of £9.5 million in cash, funded from the Group’s existing resources, together with the assumption of £6m of debt.  A further conditional payment of £200,000 is payable one year after completion.  Following completion of the acquisition Paul Allison, Sherburn’s current Managing Director and a minority shareholder, will remain with the business as a consultant.

Pat Ward, chief executive, Breedon, 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 through Sherburn’s two strategically located terminals in north-east England and eastern Scotland.”

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