Breedon buys Lagan for £455 million
Construction materials group Breedon has entered into a conditional agreement to acquire Lagan Group (Holdings), a leading construction materials business based in Belfast, for £455 million.
The combination of Breedon and Lagan will create a leading independent construction materials group in the UK and Ireland.
Breedon said it would provide an enhanced platform for further organic growth and bolt-on acquisitions.
Breedon includes Leaton Quarry, near Telford and a concrete plant at Llynclys, near Oswestry,
Lagan is a leading supplier of construction materials and contract surfacing in Ireland and the UK with a modern cement plant in Kinnegad, nine active quarries, 13 asphalt plants and nine ready-mixed concrete plants
Peter Tom, Breedon's executive chairman, said: "We are delighted to have completed our largest acquisition to date and particularly pleased that it has been so strongly supported by our shareholders.
"Over the last eight years we have pursued a successful buy-and-build strategy which has established Breedon as the largest independent construction materials business in the UK and the acquisition of Lagan is another strategic step for us.
"We believe it has the potential to add significantly to the group's performance and prospects and we are looking forward to working with our new colleagues to deliver further value for our investors."
Following the acquisition of Lagan, Breedon will operate two cement plants, around 70 quarries, 40 asphalt plants, 200 ready-mixed concrete and mortar plants, nine concrete and clay products plants, four contract surfacing businesses, six import/export terminals and two slate production facilities.
The group will employ nearly 3,000 people and have around 870 million tonnes of mineral reserves and resources.