Business
Sale of Quarries
Sale of Quarries.
About this update from Marshalls Plc
[{"type":"text","content":"\n \nRNS Number : 2114C Marshalls PLC 12 April 2013 \n \n\nMarshalls plc\nSale of quarries and associated aggregates business\n \nMarshalls plc (\"Marshalls\"), the hard landscaping specialist, is pleased to confirm that, further to the announcement on 10 April 2013, it has now reached agreement with Breedon Aggregates England Limited, a wholly owned subsidiary of Breedon Aggregates Limited (\"Breedon\"), and exchanged contracts to sell the aggregate quarries detailed below 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 being sold comprise quarries solely supplying aggregates, sand and gravel. The Group has retained all of its dimensional stone quarries some of which produce aggregate as an ancillary product. The quarries sold 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. Also included is 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 disposed of was £14.9 million. \n \nCompletion is subject to Breedon completing its placing announced on 10 April 2013 and the receipt of signed documentation incorporating landlords' consents already given in principle relating to the assignment of the Astley Moss and Clearwell leases.\n \nThe proceeds of the sale will initially be used to reduce Marshalls' Group borrowings. \n \nCommenting on the transaction, Graham Holden, Chief Executive, said\n \n\"Marshalls has been a niche player in th...