Breedon's Hope for construction sector
Breedon Aggregates has agreed a £336 million deal that will see it take over concrete maker Hope Materials, which has bases across the region.
The move will create the UK's biggest building materials group, and brings Hope's portfolio of one cement works, five quarries and 152 concrete plants into Breedon's group.
In the year to June 30, Hope sold 1.6 million tonnes of cement, 4.7 million tonnes of aggregates and 2.3 million cubic metres of concrete, generating revenue of £285.6 million and Underlying EBITDA of £37.0 million.
It has operations in Dudley, Oswestry, beside Bayston Hill Quarry on the edge of Shrewsbury, Trench and Halesfield in Telford, Walsall, Four Ashes at Wolverhampton, and Wooferton near Ludlow.
"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," said Breedon's executive chairman Peter Tom.
"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."
Amit Bhatia, chairman of London-headquartered Hope, added: "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."
