Breedon completes asset swap with Tarmac

Breedon Group is pleased to announce that it has completed an asset swap with Tarmac which secures 25 million tonnes of additional mineral reserves and around 50,000 tonnes of additional annual asphalt capacity in four key UK locations.

The Group has acquired from Tarmac three quarries near Inverness, Penrith and Wrexham, together with a quarry and asphalt plant near Porthamadog, in exchange for 23 of its ready-mixed concrete plants and a payment to Tarmac of £6.1 million in cash. 

Commenting on today’s announcement Pat Ward, Breedon’s Group Chief Executive, said: “This is an excellent, margin-enhancing deal for us and fully in line with our strategy of strengthening our asset base and improving the quality of our earnings.

“It gives us a significant quantity of high-quality mineral reserves, including a scarce source of high PSV stone and a new asphalt plant in West Wales capable of producing up to 50,000 tonnes of material a year.  It also gives us a significant new source of hardstone in the heartland of our Scottish business, at Daviot Quarry near Inverness where we already have an asphalt plant.

“At the same time it streamlines our concrete network and enables us to release value by relinquishing peripheral plants which we couldn’t supply internally and which in many cases were on short-term leases.

“This means we have become much less dependent on third-party aggregates.  We can now supply more of our concrete and asphalt plants with our own minerals, with the secure backing of nearly 900 million tonnes of reserves and resources across the UK and Ireland.

“It’s also a great example of how we can work with our larger peers – in this case Tarmac, a subsidiary of one of the world’s most successful global building materials companies – to benefit customers and other stakeholders on both sides of the deal.”

Following today’s deal, Breedon operates more than 70 quarries, 40 asphalt plants and around 180 ready-mixed concrete plants, extending from the north of Scotland to the west of Ireland and the south-east of England.

Completion of this transaction follows the conclusion of investigations by the Competition and Markets Authority, which has accepted remedies proposed by Tarmac – and accepted by Breedon – in relation to any potential competition concerns arising from it.

Tarmac assets acquired in this transaction:

Daviot Quarry, Inverness

Low Plains Quarry, Penrith

Borras Quarry, Wrexham

Minffordd Quarry & Asphalt Plant, near Porthmadog

Breedon ready-mixed concrete plants divested in this transaction:

Alrewas                                                                              Llanelli

Banbury                                                                             Llynclys

Boroughbridge                                                                  Meriden

Bournemouth                                                                   Pembroke

Briton Ferry                                                                        Portsmouth

Cardigan                                                                              Scorton

Carmarthen                                                                        Shawell

Colchester                                                                          Southampton

Dumfries                                                                             Stancombe

Exeter                                                                                   Tredegar

Halecombe                                                                         Wellington

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