UK: Breedon to acquire Hope Construction Materials
Breedon Aggregates of Leicestershire, UK, has agreed to acquire Hope Construction Materials for GBP336m (US$510.94m). Hope Construction Materials, is a major producer of cement, concrete and aggregates in the UK with more than 160 operational sites. In 2014 Hope sold 1.6Mt of cement, 4.7Mt of aggregates and 2.2Mm3 of concrete, generating revenue of GBP273.5m and profit before tax of GBP18.7m.
The acquisition extends Breedon's UK geographic footprint, opening up markets in London, the south and the southeast as well as providing the enlarged group with national coverage and balanced regional concentrations. Breedon has entered into a conditional agreement with Cortolina Investments to acquire Hope Construction Materials.
Peter Tom, Breedon's executive chairman, said: "The acquisition of Hope transforms Breedon into the UK's leading independent building materials group.
"We're creating a vertically-integrated business with one of the country's largest cement plants, nearly 60 quarries, more than 200 ready-mixed concrete plants and around 750Mt of mineral reserves and resources – together with access for the first time to the rail-fed sector of the market."
Founded in January 2013 following the divestment of assets from Lafarge and Tarmac, Hope Construction Materials employs 930 workers at a national network of 152 concrete plants, four cement depots, five aggregates quarries, four aggregates depots and an aggregates wharf. Hope's cement plant has national reach through its extensive rail capacity and a network of cement depots at Dewsbury, Theale and Walsall, providing it with the flexibility to serve major markets in Yorkshire, the Midlands and the South. An additional cement depot with a blending facility at Dagenham is currently under construction and is expected to open in the first half of 2016.
Hope chairman, Amit Bhatia, 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."
