Under the deal, Breedon has acquired from Tarmac three quarries near Inverness, Penrith and Wrexham, together with a quarry and asphalt plant near Porthamadog. This equates to 25 million tonnes of additional mineral reserves and around 50,000 tonnes of additional annual asphalt capacity.
In exchange, Tarmac get 23 of Breedon’s ready-mixed concrete plants (full list below) plus £6.1m in cash.
A deal was initially announced in December 2017 but caught the attention of the Competition & Markets Authority so needed amending.
The initial deal involved Tarmac getting 27 ready-mixed concrete plants plus £4.9m cash.
With the matter now all sorted, Breedon chief executive Pat Ward said: "This is an excellent, margin-enhancing deal for us and fully in line with our strategy of strengthening our asset base and improving the quality of our earnings.
"It gives us a significant quantity of high-quality mineral reserves, including a scarce source of high PSV stone and a new asphalt plant in West Wales capable of producing up to 50,000 tonnes of material a year. It also gives us a significant new source of hardstone in the heartland of our Scottish business, at Daviot Quarry near Inverness where we already have an asphalt plant.
"At the same time it streamlines our concrete network and enables us to release value by relinquishing peripheral plants which we couldn't supply internally and which in many cases were on short-term leases.
"This means we have become much less dependent on third-party aggregates. We can now supply more of our concrete and asphalt plants with our own minerals, with the secure backing of nearly 900 million tonnes of reserves and resources across the UK and Ireland.
"It's also a great example of how we can work with our larger peers – in this case Tarmac, a subsidiary of one of the world's most successful global building materials companies [CRH] – to benefit customers and other stakeholders on both sides of the deal."
The swap
Tarmac gets from Breedon the following 23 ready-mixed concrete plants :
- Alrewas
- Banbury
- Boroughbridge
- Bournemouth
- Briton Ferry
- Cardigan
- Carmarthen
- Colchester
- Dumfries
- Exeter
- Halecombe
- Llandybie
- Llanelli
- Llynclys
- Meriden
- Pembroke
- Portsmouth
- Scorton
- Shawell
- Southampton
- Stancombe
- Tredegar
- Wellington
Breedon gets from Tarmac:
- Daviot Quarry, Inverness
- Low Plains Quarry, Penrith
- Borras Quarry, Wrexham
- Minffordd Quarry & Asphalt Plant, near Porthmadog
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