The potential acquisition of the Belfast-headquartered Lagan Group by Breedon is in keeping with the Group’s British rival acquisition-fuelled rapid expansion in recent years.
Founded in 1960, the Lagan Group has an annual turnover of over £350 million (€395mn) and boasts over 1,000 employees. Its large operations’ portfolio includes 28 quarries in the UK and Ireland, 10 asphalt plants, a cement factory, concrete and clay product plants and two house building companies.
A Breedon Group spokesperson said: “Breedon notes the recent press speculation concerning a possible acquisition of all or a significant part of the Lagan Group ("Lagan"), the market leading construction materials business based in Belfast.
“Breedon notes that it regularly engages with companies in its sector and it can confirm that it is in discussions with Lagan and its major shareholders in connection with a possible acquisition of a substantial part of the Lagan business. There can be no certainty that the possible acquisition will proceed, nor as to the terms of the possible acquisition. A further announcement will be made as appropriate.”
Headquartered in Breedon on the Hill, Derbyshire, England, Breedon has posted strong profit growth from its former Breedon Aggregates business and its acquisition of Hope Construction Materials, which it purchased for £336 million (€380mn) in August 2016.
Last summer Breedon finalised the acquisition of Humberside Aggregates for £9 million (€10.1mn). The deal added 30 staff to the Group’s 2,300-strong workforce.
Breedon also hopes to buy four quarries and an asphalt plant from Tarmac for £16.5 million (€18.6mn). In return, Tarmac would get 27 of Breedon’s ready-mixed concrete plants and £4.9 million (€5.53mn) in cash. The deal is subject to Competition & Markets Authority (CMA) approval.
Breedon currently operates the UK’s biggest cement plant, two cement import terminals, 60 quarries, 26 asphalt plants, 200 ready-mixed concrete plants and three concrete products plants. The Group has strong asset backing, with over 750 million tonnes of mineral reserves and resources.
