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Breedon to buy C&G Concrete for £10m
Published: 26 July, 2011
DERBY: Breedon Aggregates, one of the UK's largest independent aggregates producers, has reached an agreement to acquire the business and assets of C&G Concrete from the joint administrators for £10.15m.
C&G operates three sand and gravel quarries and 13 ready-mixed concrete and mortar plants in Lincolnshire, Cambridgeshire and Humberside. In 2010 C&G produced 330 000 tonnes of aggregates and 155 000m3 of concrete, mortar and screeds. Sales revenue in 2010 was approximately £12m.
The acquired assets include a substantial and strategically valuable sand and gravel operation at Norton Bottoms in Lincolnshire. C&G also owns a number of other assets, including a farm of 286 acres with planned mineral deposits near Woodhall Spa in Lincolnshire.
In total, C&G has planned mineral reserves of 6.6 million tonnes and potential further resources of 17.6 million tonnes.
The acquisition is viewed as an excellent geographical and operational fit for Breedon Aggregates, linking the company's existing operations in the East Midlands and East Anglia and significantly enhancing its reserves and the scale of its ready-mixed concrete business.
The consideration will be settled in cash from the company's existing resources.
As part of the arrangements, Breedon Aggregates has also agreed to acquire certain assets from a related company, FH Gilman & Co which is in administrative receivership.
Commenting on the acquisition, Peter Tom CBE, executive chairman, said: "We are delighted to have secured such a high quality business as our first bolt-on acquisition and look forward to welcoming C&G's employees into the group.
“C&G has a strong market position and excellent asset base in Lincolnshire and South Humberside and we see significant growth potential in the business. We also expect to be able to deliver useful synergy savings and operational improvements following the acquisition.”