ROOFING PRODUCT MANUFACTURER Breedon has agreed a £178m deal to acquire 100 sites from the UK arm of building materials company CEMEX.
Breedon manufactures concrete tiles at a site in Northern Ireland as well as ridge tiles and dry ridge kits alongside other building supplies.
The deal is expected to complete in the second quarter of 2020.
In total, CEMEX UK operates 230 concrete mixing plants and 63 quarries in the UK, and was also previously in the roofing market, having been the parent company of Russell Roof Tiles.
Pat Ward, Breedon’s Group Chief Executive, said, “This is a unique opportunity to extend our national network through a single value-enhancing transaction, substantially increasing our footprint in several regions of Great Britain where we are currently underrepresented and adding approximately 170 million tonnes of mineral reserves and resources. It also delivers a step-change in the development of our national asphalt strategy.
“There is potential to drive significant performance improvements across these new assets and they will also strengthen our platform for further organic growth and bolt-on acquisitions.
“In addition to the cost synergies we anticipate, we also expect the deal to be accretive to both earnings and free cash flow in the first full year, with a positive ongoing impact on the cash