Breedon Aggregates is lining-up more acquisitions in the wake of the Brexit vote as current market uncertainty could throw up some bargains.
The UK’s largest independent aggregates business is planning to complete its acquisition of Hope Construction Materials on August 1.
Executive Chairman Peter Tom said Breedon intends to continue its strategy of “consolidating the UK building materials market.”
He said: “The strategic rationale of the acquisition of Hope remains compelling and it will present new opportunities to deliver self-help improvements.
“It will also give us an even stronger platform for growth through a broader geographical footprint, increased scale, improved product mix, greater financial capacity and some highly talented people.
“We fully intend to use this strengthened platform to continue to pursue our strategy of consolidating the UK building materials market.
“Indeed, we believe that market uncertainty may create further opportunities for value-creating acquisitions and we are currently considering a number of potential bolt-ons.”
Breedon revealed a pre-tax profit jump of 19% to £20.9m for the six months to June 30 on turnover up 2% at £163m.
One the Hope deal is completed the enlarged group will comprise of three divisions:
Breedon Northern will combine Breedon’s Scottish operations with Hope’s aggregates and ready-mixed concrete operations in Scotland and the north of England;
Breedon Southern will combine Breedon’s operations in England and Wales with Hope’s remaining aggregates and ready-mixed concrete operations; and
Hope Cement will comprise all of Hope’s cementitious assets.
Via Construction Enquirer. View full article here.