Breedon, a major independent UK and Ireland building materials group, has entered into the marine aggregates business in Great Britain with the acquisition of Severn Sands.
The addition of Severn Sands, a family-run marine dredging business operating in the Bristol Channel area, enhances Breedon's operational capability, secures scarce mineral reserves and resources, and ensures the Breedon on the Hill, Leicestershire-headquartered group's downstream operations in the Gloucestershire and South Wales region are fully vertically integrated.
Generating annual revenue of around £9 million, Severn Sands possesses valuable long-term extraction licences in the Bristol channel and will be immediately accretive to earnings.
The Severn Sands acquisition follows Breedon's healthy first-half trading results. The group continued its focused strategy execution delivering higher revenue, earnings and returns. Underlying revenue was up 12% to £671.1mn (£600.9mn in H1 2021); underlying EBIT was up 19% to £66.9mn (£56.4mn), and underlying profit before tax was up 25% to £60.9mn (£48.9mn).
