Pat Ward, Breedon's group chief executive
Breedon, the UK's largest independent construction materials group, has acquired Humberside Aggregates Ltd in a £9m deal.
The company which is headquartered near East Midlands Airport believes the strategic acquisition will help it expand its presence in East Yorkshire and Humberside.
Humberside Aggregates is a leading independent sand and gravel quarry and aggregates merchanting business based at North Cave near Hull in East Yorkshire, employing around 30 people.
It supplies a broad range of customers including ready-mixed concrete and mortar producers, various government agencies, local authorities, and local and national building and civil engineering contractors.
In the year to 30 April 2017, Humberside reported an underlying EBITDA of £2.1m on revenues of £14.9m. It has approximately 3.1 million tonnes of mineral reserves, with the potential to secure additional reserves in the future.
Commenting on the acquisition, Pat Ward, Breedon's group chief executive, said: "This acquisition provides Breedon Southern with a valuable source of aggregates in the important markets of East Yorkshire and Humberside, where we already operate a sizeable ready-mixed concrete business.
“It will enable us to create value by internalising the supply of sand and gravel to our network of readymix and mortar plants, whilst serving a strong existing customer base throughout the region.
"Humberside also operates a successful merchanting business, supplying limestone to builders' merchants in the region.
“A proportion of this material currently comes from Breedon's quarry at Holme Hall, giving us the opportunity to optimise these volumes and benefit from improved logistics planning.
"We look forward to welcoming all our new colleagues from Humberside to the Breedon Group."
The purchase price is being satisfied by the payment of £8.3m in cash funded from the group's existing resources, together with the assumption of £0.7m of debt.