News release
2 June 2014
Breedon Aggregates expands in Gloucestershire and
into Worcestershire with acquisition of Huntsman's Quarries
Breedon Aggregates ("Breedon" or the "Company"), the UK's largest independent aggregates business, has acquired Huntsman's Quarries Limited ("Huntsmans"), a long-established aggregates company based in the North Cotswolds, for a cash consideration of £15 million.
Huntsmans operates a substantial limestone quarry and ready-mixed concrete plant at Naunton, between Cheltenham and Chipping Norton, together with a second ready-mixed concrete plant at Evesham in Worcestershire and a fleet of 20 haulage and mixer trucks. It owns three further quarries near Naunton which are currently dormant. In 2013 the business sold over 300,000 tonnes of aggregates and generated sales of approximately £8 million with EBITDA of approximately £2 million. The business has performed well in 2014 with year-on-year revenues ahead in the first quarter.
In total, Naunton has planned mineral reserves of 4 million tonnes and potential further resources of 6 million tonnes. The mineral produced by Huntsmans is a high quality, harder-than-average Cotswold stone which is ideal for natural walling and is also particularly suitable for Type 1 sub-base and ready-mixed concrete. In addition, the business supplies natural roofing slate, decorative blocks, agricultural lime and blue clay.
The acquisition gives the Company access to the affluent and buoyant Cotswolds market, together with a new presence in the north Worcestershire concrete market.
The consideration will be settled in cash from the Company's existing resources and Breedon will also assume Huntsmans' debt of up to £2 million.
- more -
- 2 -
Commenting on the acquisition Breedon's chairman, Peter Tom CBE, said:
"Huntsmans is a well-run business making good margins in a strong local market. We see great potential both for the quarry and for the newly refurbished concrete plant at Evesham, which has just reopened, and also expect to secure some useful synergies and cost savings.
"This is exactly the kind of acquisition we're always on the lookout for. It builds our regional presence, extends our product range and gives us access to new markets, whilst adding further value for our shareholders. The Company is continuing to pursue other similar opportunities elsewhere in the UK."
Breedon will announce its interim results for the six months ended 30 June 2014 on Thursday 17 July 2014.
- ends -
Notes to editors
Breedon Aggregates (www.breedonaggregates.com)
Breedon Aggregates is the UK's largest independent aggregates business. Following the acquisition of Huntsmans, the group has 42 active quarries, 22 asphalt plants and 53 ready-mixed concrete and mortar plants stretching from the Hebrides in northern Scotland to Lydney in Gloucestershire. The group employs more than 1,100 people and has strong asset backing, with over 400 million tonnes of mineral reserves and resources in its portfolio. Breedon's strategy is to continue growing via consolidation of the heavyside building materials sector.
Huntsman's Quarries (www.huntsmansquarries.co.uk)
Huntsman's Quarries was formed in 1936, although quarrying at the site dates back to the 11th century and is mentioned in the Domesday Book. Today, the company employs over 60 people directly and many more indirectly, operating from its main quarry and ready-mixed concrete plant at Naunton near Stow-on-the-Wold in Gloucestershire and from a second ready-mixed concrete plant 17 miles away at Evesham. In addition to its planned reserves of 4 million tonnes, Huntsmans also owns over 75 acres of additional freehold land containing substantial potential reserves.
For further information:
Breedon Aggregates Limited Cenkos Securities (NOMAD/joint broker)
Simon Vivian, Group Chief Executive Max Hartley, 020 7397 8900
Rob Wood, Group Finance Director
01332 694444 Peel Hunt (joint broker)
Justin Jones / Mike Bell, 020 7418 8900
Stephen Jacobs, Head of Communications
07831 764592
