Breedon swoops to buy 100 Cemex UK sites for £178m

Aaron Morby 4 years ago
Share

Breedon has struck a deal to buy a major slice of the aggregate operations of global materials giant Cemex for £155m cash and liabilities of £23m.

Breedon boosts aggregate reserves to 1bn tonnes and aims to expand asphalt business
Breedon boosts aggregate reserves to 1bn tonnes and aims to expand asphalt business

The Cemex business that is being sold employs 650 staff across 100 active operations in the UK and will drive further consolidation of the heavyside material sector.

The sale consists of 49 ready-mix plants, 28 aggregate quarries, four depots, one cement terminal, 14 asphalt plants, and four concrete products operations.

These sites are grouped across six divisions located in Scotland, Wales, North-East England, Norfolk, the East Midlands, and Yorkshire.

Part of Cemex’s paving solutions business in the UK, together with some inactive sites, are also included in the sale to Breedon.

Cemex said it would still retain a substantial operation in this country, including cement production, ready-mix concrete, asphalt, and paving solutions.

Pat Ward, Breedon’s group chief executive, said: “This is a unique opportunity to extend our national network through a single value-enhancing transaction, substantially increasing our footprint in several regions of Great Britain where we are currently underrepresented and adding 170 million tonnes of mineral reserves and resources. “

He said that the enlarged group’s total mineral reserves and resources would stand at more than 1 billion tonnes.  Several greenfield sites are also included as part of the deal offering further potential for expansion.

Ward added: “It also delivers a step-change in the development of our national asphalt strategy.

“There is potential to drive significant performance improvements across these new assets and they will also strengthen our platform for further organic growth and bolt-on acquisitions.”

Ward said: “In addition to the cost synergies we anticipate, we also expect the deal to be accretive to both earnings and free cash flow in the first full year, with a positive ongoing impact on the cash generation of the enlarged Group.”

Last year Cemex generated £178m revenue, delivering a £23m in trading profit.

Breedon will notify the UK Competition and Markets Authority for clearance but said that completion was not conditional on conclusion of the CMA process.

The deal is expected to be finalised in the second quarter of this year, subject to completion of a TUPE consultation process.

Latest news

Fatal accident at Laing O’Rourke Oxford site

Work suspended on site after tragedy
16 hours ago

Balfour renews £330m Lincolnshire highways deal

Firm will use its new operational control hub to promptly address network issues
17 hours ago

Three Caledonian Modular-built schools to be demolished

DfE confirms Essex, Somerset and Northampton schools will be bulldozed and rebuilt
18 hours ago

Gilbert-Ash takes £30m Tate Liverpool revamp

Work to start in the New Year on remodelling of iconic 1846 warehouse
17 hours ago

HS2 Solihull mass transit enabling works out to bid

Bidding for £60m main works to start early next year
18 hours ago

Modular health specialist Vanguard rescues M-AR

Deal with administrators sees Vanguard add production capacity with 100,00 sq ft offsite factory
18 hours ago

Torsion forms JV to build £90m Leeds resi tower

Construction to start in January on one of Leeds' tallest towers
18 hours ago

Approved change to concrete ‘recipe’ to slash carbon emissions

New approved concrete mixes will be able to blend finely ground limestone and fly ash
2 days ago

Network Rail unveils Cardiff South Central masterplan

Plans being drawn up for major housing-led mixed-use scheme
1 day ago

McLaren Living to revamp Watford police station site

Developer to submit plans for a major mixed-use development
2 days ago

National Grid £12.8bn HV civils framework hits market

Firms needed for major power line links and high voltage direct current converter stations
2 days ago

P.P O’Connor blows down four iconic cooling towers – video

Fiddlers Ferry Power Station regeneration gets off with a bang
2 days ago

Worker injured at £300m offshore wind factory site

Accident on major Teesside construction site
2 days ago

8Build bags Cambridge office and labs scheme

Firm wins phase 2 of The Press biotech development
2 days ago

Cash boost to accelerate Transpennine Route Upgrade work

Government commits £3.9bn for latest phase of rail upgrade
2 days ago

Further fines after fatal fall on office conversion

£600,000 CDM fine after death while installing lightning protection system
2 days ago

Lonsdale went down owing £65m to supply chain

More than 600 firms owed money as reduced credit rating sinks M&E giant
5 days ago

Wates only bidder for £80m Cardiff estate rebuild

Council contacted 20 framework firms but received only one bid for 295-home Channel View estate rebuild
5 days ago

£21m legal battle over flawed concrete at Salford flats job

Developer in compensation battle with Arcadis after new concrete core demolished
5 days ago

Abu Dhabi developer Aldar Properties buys London Square

UAE giant swoops on resi specialist in vote of confidence for London market
5 days ago

Hunt for delivery partner to revive New Hospital Programme

Programme delivery partner to get £600m fee to get plans back on track
6 days ago

Green light for new £780m Essex garden village

3,700 homes and four new schools to be built at Dunton Hills
5 days ago

Laing O’Rourke makes a £288m loss

Rampant inflation on fixed-price jobs and problem contracts blow hole in accounts
6 days ago

Keltbray, OCU and Clancy clinch £1bn electricity network upgrade

Scottish and Southern Electricity Networks awards biggest ever deals for central southern England
7 days ago

G&T enlisted for commercial review of HS2 main civils contracts

Phase 1 Main Works Civils Contracts to come under cost scrutiny
6 days ago

TClarke order books doubles to top £1bn for first time

M&E specialist on track to exceed £500m turnover this year
6 days ago

Wates signs Government safety remediation pact

Private builder belatedly signs fire safety developer remediation contract
6 days ago

Liverpool all-electric industrial park approved

McLaren and Caddick in chase for Sefton 800,000 sq ft Atlantic Park scheme
6 days ago

Former Buckingham Group MD to join John F Hunt

Simon Hyams is new Managing Director for Contracting
7 days ago

Three in race for retendered £150m A9 dualling job

Bidders take another look after client takes on more risk
7 days ago

Contractor services