Business
Potential Sale of Quarries
Potential Sale of Quarries.
About this update from Marshalls Plc
[{"type":"text","content":"\n \nRNS Number : 9983B Marshalls PLC 10 April 2013 \n \n\nMarshalls plc\nSale of quarries and associated aggregates business\n \nMarshalls plc (\"Marshalls\"), the hard landscaping specialist, is in advanced discussions to sell the aggregate quarries detailed below to Breedon Aggregates England Limited, a wholly owned subsidiary of Breedon Aggregates Limited (\"Breedon\"), for a cash consideration on completion of £17.5 million. The final consideration will be up to £19.0 million dependent on certain conditions subsequent.\n \nThe assets under discussion comprise quarries solely supplying aggregates, sand and gravel. The Group would retain all of its dimensional stone quarries some of which produce aggregate as an ancillary product. The quarries that would be affected, subject to the discussions, are the Group's freehold and leasehold quarries at Clearwell, near Lydney, Gloucestershire, which produce primarily high quality limestone aggregates and the Group's sand and gravel quarries located at Dunsville, near Hatfield, South Yorkshire, Astley Moss in Greater Manchester and Mold in North Wales which operates under the Lloyds Sand and Gravel trading name and the business carried on from these quarries. The discussions also include an option to develop sand and gravel resources near Saredon, Staffordshire. \n \nThese quarries currently supply aggregate materials to the construction sector, including materials used by Marshalls in the manufacture of its range of concrete products. For the year ended 31 December 2012, the operating profit generated from the operations carried on at these quarries was £1.1 million, based on an annual turnover of £10.0 million, of which £8.8 million came from sales outside the Group. As at 31 December 2012 the value of the gross assets under discussion, which, if successfully concluded, would be disposed of, was £14.9 million. \n \nThe discussions also envisage commercial arrangements for the continued supply of materials to Marshalls' manufacturing sites following the transfer to be put in place.\n \nIf completed, the proceeds of the sale would initially be used to reduce Marshalls' Group borrowings. \n \nAt present, there can be no certainty that the disposal of these assets will complete, nor as to the final terms of the disposal. A further announcement re...