Breedon has agreed a £16.5 million deal to acquire four quarries and an asphalt plant from sustainable buildings group, Tarmac.

The company will pay £4.9m in cash and transfer 27 of its readymix plants to Tarmac. The deal, which is expected to close in the first half of next year, is conditional on approval by the Competition & Markets Authority (CMA).

Quarries being exchanged are located in Scotland, Cumbria and North Wales, together with a quarry and asphalt plant in West Wales.

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The 27 ready-mix concrete facilities are located in multiple locations, extending from Dumfries in Scotland to Exeter in Devon.

Overall, the deal will add around 25 million tonnes to Breedon's mineral reserves and resources, as well as boosting the development of its asphalt capacity and streamlining the Group's readymix network.

Pat Ward, Breedon's Group Chief Executive, said: "This deal brings significant benefits: it adds to our reserve base; it is margin-enhancing; it releases value from peripheral readymix plants; and it will enable us to replace third-party aggregates providers with our own sources of supply.

"It is also a great example of how we can work with our larger peers – in this case CRH, one of the world's most successful global building materials companies – to benefit customers and other stakeholders on both sides."

(LM/MH)