Business
BREEDON COMPLETES ASSET SWAP WITH TARMAC
BREEDON COMPLETES ASSET SWAP WITH TARMAC.
About this update from Breedon Group Plc
[{"type":"text","content":"\n \nRNS Number : 1608T Breedon Group PLC 02 July 2018 \n\n2 July 2018 \nBreedon Group plc\n \nBreedon completes ASSET SWAP with Tarmac\n \nFurther to the announcements made on 13 December 2017 and 26 April 2018, Breedon Group is pleased to announce that it has completed an asset swap with Tarmac which secures 25 million tonnes of additional mineral reserves and around 50,000 tonnes of additional annual asphalt capacity in four key UK locations.\n \nThe Group has acquired from Tarmac three quarries near Inverness, Penrith and Wrexham, together with a quarry and asphalt plant near Porthamadog, in exchange for 23 of its ready-mixed concrete plants and a payment to Tarmac of £6.1 million in cash. \n \nCommenting on today's announcement Pat Ward, Breedon's Group Chief Executive, said: \n \n\"This is an excellent, margin-enhancing deal for us and fully in line with our strategy of strengthening our asset base and improving the quality of our earnings.\n \n\"It gives us a significant quantity of high-quality mineral reserves, including a scarce source of high PSV stone and a new asphalt plant in West Wales capable of producing up to 50,000 tonnes of material a year. It also gives us a significant new source of hardstone in the heartland of our Scottish business, at Daviot Quarry near Inverness where we already have an asphalt plant.\n \n\"At the same time it streamlines our concrete network and enables us to release value by relinquishing peripheral plants which we couldn't supply internally and which in many cases were on short-term leases.\n \n\"This means we have become much less dependent on third-party aggregates. We can now supply more of our concrete and asphalt plants with our own minerals, with the secure backing of nearly 900 million tonn...