Displaying items by tag: Breedon Aggregates

Ireland/UK: Breedon Aggregates is reportedly in talks to buy a part or all of Ireland’s Lagan Group, according to the Sunday Times newspaper. Breedon Aggregates and Lagan’s subsidiary Whitemountain operate an asphalt joint venture at present. However, Lagan Group did not respond to a request for comment on the talks.

Breedon Aggregates purchased Hope Construction Materials in 2016, which included the Hope cement plant. The acquisition boosted Breedon’s financial results in 2017 giving it a revenue of Euro523m and it described the year as the, “…most eventful year in the group’s history.”

Lagan Cement operates a 0.7Mt/yr plant in Kinnegad in Ireland. In late 2012 it proposed a joint venture with Quinn Building Products. However, the deal fell through in early 2013 following the receipt of a package containing a bullet which was sent in the post to the Lagan's chief executive, Kevin Lagan. The bullet, which was sent to Lagan at his Belfast office, was accompanied by a message stating, "Quinn ... is this what you want".

UK: Breedon Group’s sales revenue and profits have been expanded by its acquisition of Hope Construction Materials in 2016. Its revenue rose by 43% year-on-year to Euro523m in 2016 from Euro367m in 2015. Its profit before tax rose by 50% to Euro53.9m from Euro36m. The group also attributed its success to its aggregate business.

“2016 was arguably the most eventful year in the group’s history. We completed our largest acquisition to date, invested a record amount in our business, began supplying our biggest ever contract and delivered an excellent financial performance – all against the background of an uncertain economic environment and challenging trading conditions in many of our markets,” said executive chairman Peter Tom.

The building materials company added cement production to its portfolio when it purchased Hope in mid-2016. It added a cement plant, five new quarries, a network of concrete plants and eight rail-linked distribution depots. In November 2016 it bought Sherburn Minerals, including two terminals in northeast England and eastern Scotland, that are used to import cement and ground granulated blast-furnace slag (GGBS).

UK: The Competition and Markets Authority (CMA) has approved the acquisition by Breedon Aggregates of Hope Construction Materials subject to a sale of selected assets. Breedon has offered to sell 14 ready-mix concrete sites to Tarmac and the Concrete Company, which has been accepted by the CMA. As indicated in Breedon’s announcement on 21 July 2016, it now expects to complete the acquisition of Hope on 1 August 2016.

“The way is now clear for Hope to join us and create the UK’s largest independent construction materials group. It will give us a stronger platform for growth, with a broader geographical footprint, increased scale, an improved product mix, greater financial capacity and a team of highly talented people,” said Breedon’s Chairman, Peter Tom.

With the acquisition of Hope, Breedon Group, as the company will be named from 1 August 2016, Breedon will become the UK’s largest independent construction materials group, with the country’s largest cement plant, around 60 quarries, nearly 30 asphalt plants, approaching 200 ready-mixed concrete plants, some 2100 employees and approximately 750Mt of mineral reserves and resources. The enlarged group’s strategy will be to continue growing organically and through consolidation of the UK heavyside building materials sector.

UK: The Competition and Markets Authority (CMA) has referred the proposed acquisition of Hope Construction Materials by Breedon Aggregates for further investigation unless Breedon can take action to address competition concerns. An initial study by the CMA found that competition issues might arise in 27 ready-mixed concrete sites, causing potential price rises for end consumers. The study ruled out any competition issues with regards to the companies’ aggregates and cement markets.

“The vast majority of the merger raises no concerns but there are a number of areas where the companies compete strongly with each other for customers and the concern is that the loss of such rivalry could lead to price rises for customers. The businesses may now resolve these concerns or face a detailed investigation,” said Sheldon Mills, CMA Senior Director of Mergers. Unless Breedon takes action an in-depth phase two investigation will be conducted by the CMA.

Breedon responded that the CMA’s response was expected. Subject to agreement with the CMA on appropriate remedies, Breedon expects to complete the acquisition later in 2016. Breedon announced in November 2015 that is was planning to buy Hope Construction Materials for Euro480m.

UK: Breedon Aggregates plans to acquire Hope Construction Materials for Euro480m. In a statement, Breedon said that the transaction would create 'the UK's leading independent producer of cement, concrete and aggregates.'

Hope has 160 operational sites, including a cement works in Derbyshire, five quarries and 152 concrete plants. In the first six months of 2015, Hope sold 1.6Mt of cement, 4.7Mt of aggregate and 2.3Mm3 of concrete, generating revenue of Euro407m and underlying earnings before interest depreciation and amortisation of Euro52.8m.

The acquisition is conditional upon UK competition authority approval and is expected to be completed in the second quarter of 2016. "This acquisition is well-timed, with UK construction output forecast to expand by around 15% over the next four years and volumes of all our major products expected to grow strongly," said Peter Tom, Breedon Executive Chairman. "We are confident that we will be able to continue delivering significant value for our shareholders in the coming years, with an even stronger platform for growth."

The Chief Executive of Aggregate Industries, part of LafargeHolcim, Pat Ward, will take over as Breedon Chief Executive early in 2016.

UK: Simon Vivian, Chief Executive of Breedon Aggregates Limited, has been appointed as Chairman of the UK's Mineral Products Association (MPA) for the next two years. He succeeded Bill Brett, effective 1 September 2015. Vivian is the third chairman of the MPA to date to serve from an independent company.

"We are delighted that Simon has agreed to pick up the baton from Bill. His wide industry knowledge and experience will be invaluable to the association as we look to set the agenda for the industry for the next 10 years and respond to the challenges ahead," said MPA Chief Executive Nigel Jackson

The MPA looks out for the interests of the UK's cement producers.