Roadway is based in Llay near Wrexham and specialises in local authority term maintenance, minor road maintenance schemes and associated civil engineering works.
The purchase of the business coincides with the opening of a new asphalt plant on its Wrexham site.
In the year to 31 July 2018 Roadway reported pre-tax profits of £1.3m on revenues of £5.1m.
Mike Pearce, managing director of Breedon Southern, said: “This acquisition significantly strengthens our contract surfacing operations and establishes Breedon as a fully integrated business in North Wales.
“The Wrexham plant will expand our asphalt capacity in the region, complementing our units at Dowlow, Minffordd and Leaton, and enable us to offer a full asphalt supply and lay service throughout North Wales, Shropshire, Cheshire and Merseyside.
Pat Ward, Breedon’s group chief executive, added: “This is a further step in our regional expansion, acquiring an integrated asphalt and contract surfacing business in an area of the UK where we have been seeking to strengthen our presence for some time.
“It demonstrates our consistent ability to secure value-enhancing acquisitions and we remain confident of being able to continue adding value in this way.”