Business
Proposed Placing to fund Acquisitions
Proposed Placing to fund Acquisitions.
About this update from Breedon Group Plc
[{"type":"text","content":"\n \nRNS Number : 9984B Breedon Aggregates Ld 10 April 2013 \n \n\n \n \n \n \n \n \nNews release\n \n \n10 April 2013 \n \nBreedon Aggregates Limited \n(\"Breedon Aggregates\" or the \"Group\")\n \nBreedon Aggregates announces £61 million placing to fund acquisitions \n \nGroup acquires Scottish assets from Aggregate Industries for £34.0m\nand is in advanced stages of a possible acquisition for up to £19.0m\n \nŸ Scottish acquisition will add 6 active quarries, 4 asphalt plants, 7 ready-mixed concrete plants & 2 concrete block plants in Grampian, Tayside, Highlands and Hebrides\n \nŸ Group mineral reserves & resources will more than double to almost 400m tonnes: enough to last 76 years at current extraction rates\n \nŸ Scottish acquisition would have added approximately 20% to Group revenue and 24% to Group EBITDA in 2012\n \nŸ Possible acquisition of assets in England and Wales could add a further 4 quarries and up to 13m tonnes of mineral reserves and resources\n \nŸ Company has conditionally raised £61.0 million through a placing at 21p per share to fund acquisitions\n \nŸ Acquisitions will take the Group into new, contiguous, geographical markets and are in line with Breedon's stated strategy of acquiring earnings-enhancing aggregates-related businesses with strong potential for performance improvements and/or synergy benefits\n \nPeter Tom CBE, Chairman, said, \"These acquisitions are consistent with our long-term aim of becoming the lowest-cost operator in our chosen markets. We believe that they will put us in an even stronger position to benefit from any UK economic recovery.\n \n\"We will remain focused on further improving our performance and our management team has demonstrated its ability to deliver solid results in the most difficult market conditions. The previous acquisitions made by the Group have all added significant value to our core business and this gives us confidence in our ability to repeat this with future deals. Weather permitting, the Board is confident of making further progress in 2013.\"\n \n- ends -\n \n \n \n \nMore about Breedon Aggregates\n \nBreedon Aggregates Limited is th...