Breedon enters agreement to acquire Lagan Group (Holdings) Ltd

Breedon enters agreement to acquire Lagan Group (Holdings) Ltd
17 April 2018

Breedon Group Plc has entered into a conditional agreement to acquire Lagan Group (Holdings) Ltd (Lagan), a leading Belfast-based construction materials business, for a cash consideration of GBP455m on a cash- and debt-free basis.

The consideration will be financed by a combination of a new GBP150m term loan, a new GBP350m revolving credit facility which replaces Breedon's existing GBP300m revolving facility and a GBP170m equity placing.

"We are delighted to have completed our largest acquisition to date and particularly pleased that it has been so strongly supported by our shareholders," said Peter Tom CBE, Breedon's executive chairman.

"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," Mr Tom added.

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. In the year ended 31 December 2017, Lagan generated revenues of GBP249m and EBITDA of GBP46m.

The acquisition enables Breedon to enter the attractive Irish construction market and provides significant opportunities to expand upstream though the aggregates business in Ireland and downstream through the asphalt and ready-mixed concrete operations.

Published under Cement News