Breedon Aggregates has announced a new agreement with Cortolina Investments Sarl to buy Hope Construction Materials for £336m…
A new leading force in cement, concrete, and aggregates has been created after Breedon Aggregates announced it will purchase Hope Construction Materials. The acquisition will provide an entryway for Breedon into the UK cement market and will bring Hope Construction Material’s 160 UK sites including five quarries, and 152 concrete plants under its remit.
The firm reported producing and suppling 4.7 million tonnes of aggregates, 2.3 million cubic metres of concrete, and 1.6 million tonnes of cement in the year to 30 June 2015. These sales generated a profit of £285.6m and underlying earnings before interest, tax, depreciation and amortization (EBITDA) of £37.0m.
Current chairman of Hope Construction Material’s, Amit Bhatia, is expected to be appointed to the board as a non-executive director once the acquisition is completed in the second quarter of 2016.
Breedon’s executive chairman Peter Tom said: “The acquisition of Hope will transform Breedon into the UK’s leading independent building materials group.
“We’re creating a vertically integrated business with one of the country’s largest cement plants, around 60 quarries, more than 200 ready-mixed concrete plants and 750 million tonnes of mineral reserves and resources – together with access for the first time to the rail-fed sector of the market.
“We’re particularly pleased that Abicad [associated company of the seller] will become a significant shareholder in the enlarged Breedon group and look forward to welcoming Amit to our board. This acquisition is well-timed, with UK construction output forecast to expand by around 15 per cent over the next four years and volumes of all our major products expected to grow strongly.’
Bhatia also commented on the acquisition. He said: “The growth of Hope is testament to the incredible amount of hard work put in by everyone in the business over the past three years.
“The combination with Breedon builds on that by creating a new, independent force in the construction materials sector with superior growth prospects and greater opportunities, thanks to its broader product mix, strong customer offer and extended geographic footprint.
“Both companies are entrepreneurial and energetic and this transaction will combine the best of both teams and cultures.”
