Breedon Aggregates expands with acquisition of Huntsman’s Quarries
Published: 02 June, 2014
Breedon Aggregates has acquired Huntsman’s Quarries, an aggregates company based in the North Cotswolds, for a cash consideration of £15m.
Huntsman’s Quarries 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 £8m with EBITDA of approximately £2m. 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 4m tonnes and potential further resources of 6m tonnes. The mineral produced by Huntsman’s Quarries 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 Huntsman’s Quarries debt of up to £2m.
Commenting on the acquisition Breedon’s chairman, Peter Tom CBE, said: “Huntsman’s Quarries 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, while adding further value for our shareholders. The company is continuing to pursue other similar opportunities elsewhere in the UK.”