Aggregates giant Breedon Group is continuing to grow with the acquisition of Sherburn Minerals Group for up to £15.7million.
Breedon announced the deal yesterday as it published results showing a strong performance in the last 10 months.
Earlier this year the group, which is supplying materials for the Aberdeen city bypass and A9 dualling work between Perth and Inverness, completed the acquisition of Hope Construction Materials.
Sherburn is an independent building materials business, based in County Durham, employing around 110 people and operating four quarries and five ready-mixed concrete plants in the north of England. It also distributes cement products from import terminals at Dundee and Blyth, near Newcastle.
Breedon chief executive Pat Ward 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 cementious 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.”.
Sherburn reported and underlying EBITDA of £1.8million on revenues of £16.1million in the year to 31 March 2016. It has more than 21 million tonnes of mineral reserves and resources and significant cement storage capacity at its two terminals.
Breedon said its total group revenue grew by 31% to approximately £361million in the 10 months to 31 October 2016. Sales volumes of aggregates were up by 25%, asphalt by 1% and concrete by 96%.
The group said the integration of Hope was going well, with “synergies coming through earlier than had previously been expected.”
That acquisition saw the number of of quarries and concrete plants owned by Breedon rise to 60 and more than 200 respectively and its workforce grow to around 2,100.
The group said that if the weather remains favourable it expects its earnings before interest and tax to be ahead of current market expectations.