U.K. – Breedon Aggregates buys rival
By Andrew Macklin
November 19, 2016 – Breedon Aggregates has reached a deal to purchase rival aggregates producer Hope Construction Materials for 336 million pounds.
The combination of Breedon and Hope will create the U.K.’s leading independent producer of cement, concrete and aggregates and a vertically-integrated building materials group. The Acquisition is consistent with Breedon’s strategy of organic growth combined with the continuing consolidation of the smaller end of the U.K. heavy-side building materials industry.
Hope is a leading independent construction materials supplier in the UK with a national footprint of over 160 operational sites, including the Hope cement works in Derbyshire, 5 quarries and 152 concrete plants
“The acquisition of Hope transforms Breedon into the U.K.’s leading independent building materials group,” says Peter Tom, Breedon’s executive chairman. “We’re creating a vertically-integrated business with one of the country’s largest cement plants, nearly 60 quarries, more than 200 ready-mixed concrete plants and around 750 million tonnes of mineral reserves and resources – together with access for the first time to the rail-fed sector of the market.”
“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,” says Amit Bhatia, Hope’s chairman. “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. I believe strongly in Peter’s leadership and in the potential of the enlarged business, and am delighted to be joining the board as well as retaining a considerable stake in the combined business.”
The acquisition is conditional upon the approval of the UK Competition and Markets Authority (the “CMA”) and is expected to complete in Q2 2016.