Breedon to acquire Sherburn

Breedon, the UK's largest independent construction materials group, has agreed to acquire the Sherburn Minerals Group for a total consideration of up to £15.7 million. Sherburn is a leading independent heavyside building materials business headquartered in County Durham, employing approximately 110 people. It 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 £16.1 million in the year to 31 March 2016. It has in excess of 21 million tonnes of mineral reserves and resources, together with significant cement storage capacity at its two terminals.

Breedon also reported a a strong performance in the 10 months to 31 October. Both volumes and revenues in the former Breedon Aggregates business were ahead of the prior year, supplemented by a three-month contribution from the former Hope Construction Materials business. Including Hope, Group sales volumes of aggregates increased by 25 per cent, asphalt by 1 per cent and concrete by 96 per cent. Total Group revenue for the 10-month period increased by 31 per cent to approximately £361 million. The integration of Hope is progressing well, with synergies coming through earlier than had previously been expected. Assuming that weather conditions remain favourable for the remainder of the financial year, the Group's underlying EBIT for the full year is expected to be ahead of current market expectations.

At 9:24am: (LON:BREE) Breedon Aggregates share price was +0.13p at 74.5p