Breedon Aggregates cements £10m C&G deal
Derby-based Breedon Aggregates has acquired Lincolnshire's C&G Concrete out of administration. Breedon, which claims to be the UK's largest aggregates producer, bought the company through a wholly-owned subsidiary for £10.1m. Breedon Aggregates said it would now "continue to review" a number of further acquisition opportunities.
Stamford-based C&G, which has 130 employees, is a producer of aggregates, ready mixed concrete and mortar for the construction industry.
It was placed into administration on 16 May this year by its directors, in response to an advertisement in the London Gazette publicising a petition for winding up. The Midlands office of PwC was appointed administrator for the company.
C&G operates three sand and gravel quarries and 13 ready-mixed concrete and mortar plants in Lincolnshire, Cambridgeshire and Humberside. Sales revenue in 2010 was about £12m.
Breedon Aggregates, based in Breedon-on-the Hill, Derby, acquired assets from the company including a sand and gravel operation at Norton Bottoms in Lincolnshire.
C&G also owns a number of other assets, including a farm of 286 acres with planned mineral deposits near Woodhall Spa in Lincolnshire. In total, C&G has planned mineral reserves of 6.6 million tonnes and potential further resources of 17.6 million tonnes.
The deal will be settled in cash from Breedon's existing resources. As part of the arrangements, the company has also agreed to acquire certain assets from a related company, F H Gilman & Co, out of administrative receivership.
Peter Tom, executive chairman of Breedon Aggregates, said: "We are delighted to have secured such a high quality business as our first bolt-on acquisition and look forward to welcoming C&G's employees into the group.
"C&G has a strong market position and excellent asset base in Lincolnshire and South Humberside and we see significant growth potential in the business. We also expect to be able to deliver useful synergy savings and operational improvements following the acquisition.
"We continue to review a number of other acquisition opportunities as we seek to build on the excellent platform we have created in Breedon Aggregates."
Following the acquisition, Breedon Aggregates operates 26 quarries, 18 asphalt plants and 40 concrete (including mortar) plants in England and Scotland and employs about 830 people.
