LONDON (Alliance News) - Breedon Aggregates Ltd Thursday said it has expanded into southwest Scotland by buying Barr Quarries Ltd for GBP21 million in cash.
Barr Quarries employs approximately 130 people and is headquartered near Cumnock, 35 miles south of Glasgow. It operates 11 quarries, five asphalt plants and six ready-mixed concrete plants extending from Dalry in the north to Stranraer in the south and east to Moffat.
It has approximately 57 million tonnes of mineral reserves and resources, enough to last pproximately 70 years at current rates of extraction, according to Brredon. It also operates a successful contract surfacing business.
Barr Quarries made sales of GBP25.5 million in 2013 and underlying earnings before interest, tax, depreciation and amortisation of GBP2.7 million. Sales were also up on the year in the first half of 2014, Breedon said.
"The board believes that Barr Quarries will be an excellent fit for Breedon. It is fully integrated and will give the group a fifth self-contained region in Scotland," the company said in a statement.
"With the uncertainties surrounding the independence issue now behind us, we believe our prospects north of the border have never been brighter and we can look ahead with renewed confidence. Our acquisition of Barr Quarries is a clear demonstration of our long-term commitment to this important market," Breedon Chairman Peter Tom said.
Breedon expects the deal to close by the end of this month.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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Breedon (BREE)