UK and Ireland construction materials group
Roadway is a family-run business based in Llay near Wrexham, North Wales. Founded in 2000, it specialises in local authority term maintenance, minor road maintenance schemes and associated civil engineering works. The purchase of the business coincides with the opening of a new asphalt plant on its Wrexham site. Key management will remain with the business.
The total consideration, subject to completion adjustments, comprises £10.8mn payable in cash on completion, together with up to £2.7mn of deferred consideration payable in cash on performance over the next five years. In the year to 31 July 2018 – prior to the introduction of its new asphalt production capability – Roadway reported underlying EBITDA of £1.3mn and profit before tax of £1.3mn on revenues of £5.1mn.
Mike Pearce, MD of Breedon Southern, said the acquisition significantly strengthens Breedon's contract surfacing operations and establishes it as a fully integrated business in North Wales.
“The Wrexham plant will expand our asphalt capacity in the region, complementing our units at Dowlow, Minffordd and Leaton, and enable us to offer a full asphalt supply and lay service throughout North Wales, Shropshire, Cheshire and Merseyside," he added. "Roadway also provides an additional route to market for aggregates from our quarries at Minffordd, Borras, Denbigh and Leaton.
Breedon group chief executive Pat Ward said that the acquisition marks a further step in its regional expansion, with the acquisition of an integrated asphalt and contract surfacing business in an area of the UK where Breedon has been seeking to strengthen its presence for some time.
