Marshalls plc
Sale of quarries and associated aggregates business
Marshalls plc ("Marshalls"), the hard landscaping specialist, is pleased to confirm that, further to the announcement on 10 April 2013, it has now reached agreement with Breedon Aggregates England Limited, a wholly owned subsidiary of Breedon Aggregates Limited ("Breedon"), and exchanged contracts to sell the aggregate quarries detailed below for a cash consideration on completion of £17.5 million. The final consideration will be up to £19.0 million dependent on certain conditions subsequent.
The assets being sold comprise quarries solely supplying aggregates, sand and gravel. The Group 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 high quality limestone aggregates and the Group's 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 and Gravel trading name and the business carried on from these quarries. 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 £1.1 million, based on an annual turnover of £10.0 million, of which £8.8 million came from sales outside the Group. As at 31 December 2012 the value of the gross assets disposed of was £14.9 million.
Completion is subject to Breedon completing its placing announced on 10 April 2013 and the receipt of signed documentation incorporating landlords' consents already given in principle relating to the assignment of the Astley Moss and Clearwell leases.
The proceeds of the sale will initially be used to reduce Marshalls' Group borrowings.
Commenting on the transaction, Graham Holden, Chief Executive, said
"Marshalls has been a niche player in the UK aggregates market for a number of years and, while the business is profitable, it remains ancillary to the core operations where our growth focus lies. The consideration received by Marshalls from the sale of these quarrying operations will initially be used to reduce net debt and we consider it is in the best interest of shareholders."
Enquiries:
Graham Holden |
Chief Executive |
Marshalls plc |
01484 438900 |
Ian Burrell |
Finance Director |
Marshalls plc |
01484 438900 |
Jon Coles |
|
Brunswick Group |
0207 404 5959 |
Charlotte Winsley |
|
Brunswick Group |
0207 404 5959 |
