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11/04/2013

Breedon To Increase Scottish Production

Breedon Aggregates, the construction materials supplier, is to increase its presence in Scotland after acquiring a range of assets from Aggregate Industries, the Scotsman has reported.

The deal, which is worth £34m, will see the firm purchase seven ready-mixed concrete plants, six quarries, four asphalt sites and two concrete-block facilities.

Around 150 workers will also join the group, which said it expects to build on this number following the agreement.

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The assets are distributed across Grampian, the Hebrides, the Highlands and Tayside.

The company already has a strong presence in the north, where it has assets in Aviemore, Dunfermaline and Inverurie.

Breedon said the latest acquisition would have added around 20% to last year's revenues of £173.5m, and increased their underlying pre-tax profits by 24%.

Speaking to the Scotsman, Breedon Chairman Peter Tom said: "There is potential to significantly improve the performance of these operations through rationalisation and significant new contracts, including the upgrade to the A9 north of Perth and the Aberdeen western peripheral route."

Mr Tom added that the company had benefited from the expansion of Scotland's renewable energy industry. Breedon is a major supplier of ready-mixed concrete for wind turbine bases.

(JP/CD)

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