Breedon expands in the north with £16m acquisition

Aaron Morby 8 years ago
Share

Quarrying and ready-mixed concrete group Breedon has stepped up its nationwide expansion with the acquisition of northern materials rival Sherburn Materials Group.

Concrete Sherburn

Sherburn made an underlying profit of £1.8m from £16m sales this year

Breedon will pay £15.7m for the heavyside building materials business which is headquartered in County Durham and employs around 110 people. 

Sherburn operates four quarries and five ready-mixed concrete plants in County Durham, Northumberland, North Yorkshire and Cumbria. 

It also distributes cementitious products from two import terminals at Blyth near Newcastle and Dundee in eastern Scotland.

Sherburn achieved revenues of £16.1m last year and boasts more than 21m tonnes of mineral reserves and resources, together with significant cement storage capacity at its two terminals.

Paul Allison, Sherburn’s current Managing Director and a minority shareholder, will remain with the business as a consultant.

Pat Ward, Breedon’s chief executive, said: “Following our acquisition of Hope earlier this year, which significantly expanded our geographical footprint in the north of England, Sherburn is a perfect infill acquisition for us.  It gives us additional mineral reserves and access to new markets for our aggregates and concrete, as well as a first-rate workforce.

“It also complements our existing cement plant at Hope and will enable us to expand our cementitious business through the importation of cement and ground granulated blast-furnace slag through Sherburn’s two strategically located terminals in north-east England and eastern Scotland.”

In a trading statement this morning Breedon a three  three-month contribution from the former Hope Construction Materials business it acquired had seen group revenue soar by a third in the last 10 months to £361m.

Assuming that weather conditions remain favourable for the remainder of the financial year, the Group’s underlying EBIT for the full year is expected to be ahead of current market expectations.

 

Latest news

Keltbray fine increased to £18m after failed bid rigging appeal

Contractor loses penalty discount for settling with competition authorities
1 day ago

Luxury house builder goes under with 70 job losses

Octagon Developments in administration after 40 years in business
2 days ago

Top Ten best read stories of 2024

The biggest headlines of an eventful year. Have a good one and here's to a successful 2025
2 days ago

BAM Nuttall fined £800,000 after concrete skip tragedy

Young labourer killed by falling bale arm
3 days ago

Keltbray infrastructure business reveals new name

AUREOS means "new dawn" after private equity acquisition
2 days ago

Stiffer fines for over-running street works from next Summer

Cash raised from lane rentals to be channeled into pothole repairs
2 days ago

£113m Basildon rental homes scheme seals build finance

Work expected to start early next year on Market Square project
2 days ago

Notting Hill Genesis seeks more tier 1 repairs contractors

London housing trust seeks eight firms for new £1.5bn repairs framework
2 days ago

Reclaimed steel oil rig columns worked into London office revamp

Curo will use reclaimed bricks and steel for Fitzrovia office overhaul
3 days ago

CITB delays levy approval consultation

Levy agreement talks pushed back by ongoing review into effectiveness of training body
3 days ago

Ofwat approves £104bn water industry spending plan

Household water bills to rise by 36% to fund quadrupling of investment
3 days ago

Costain/ Siemens JV clinches HS2 power supply job

£300m deal for HV power supply systems over the 225km route
3 days ago

Demolition team assembles on Multiplex London Wall site

Erith to start work next month at Deutsche Bank's former headquarters
4 days ago

Norwich Council acts to revive £300m Anglia Square scheme

Council uses Homes England funding to buy stalled site with planning for 1,100 homes
3 days ago

Go-ahead for 4,500-home Cambridgeshire new town

Waterbeach new town plan stalled three years ago after an Environment Agency objection
3 days ago

Henry Boot to take total control of Stonebridge Homes

Deal worth at least £30m
3 days ago

HS2 costs could hit £66bn

Government looking for next estimate to be lower
4 days ago

Mace to close construction logistics arm

Specialist business being wound down
4 days ago

National Grid to invest £35bn over next five years

Plan set out for record investment in electricity transmission infrastructure
4 days ago

Profits double at Barhale

Civils specialist sees order book top £1bn
4 days ago

Balfour wins 68km HV underground power cable deal

Main works to start next year on Eastern Green Link 2 job
4 days ago

Stunning site wrap unveiled on Sloane Street

Hoarding creates illusion of fully formed façade on £53m Galliford Try job
4 days ago

Heathrow Airport upgrade spend takes off again

Airport operator will spend £2.3bn over the next two years
4 days ago

Government buys back over 36,000 military homes

Public ownership deal to release wave of upgrade and new build work
5 days ago

Story Contracting staff braced for rail job losses

Work coming through slower than expected from Network Rail
5 days ago

Ballymore submits two plans for 3,700 East London homes

Construction could start in 2025 on Thames Road and Knights Road schemes
5 days ago

Blackpool council steps in on failed developer’s £300m scheme

Blackpool Central site clearance to start in the New Year as hunt starts for new developer
6 days ago

Brookfield submits retro-first London office plan

Milton Gate plan for Square Mile will hike space by nearly 50%
5 days ago

Bowmer + Kirkland gets start date for £100m Siemens site

Construction to begin early next year on Chippenham scheme
6 days ago

Torsion sells under-construction Leeds BTR scheme

Concrete frame due to start soon on 300-apartment complex
6 days ago

Contractor services