Construction materials giant Breedon Group has agreed a £178 million deal to buy a part of Cemex 海角视频 group.
It said the 100 “quality assets” were underpinned by approximately 170 million tonnes of mineral reserves and resources.
In a statement it said: “The combination of Breedon’s and CEMEX’s 海角视频 assets will further enhance Breedon’s position as a leading construction materials group in Great Britain and Ireland.
“The acquisition is consistent with Breedon’s strategy of acquiring earnings-enhancing aggregates related businesses with strong potential for performance improvements and synergy benefits.”
It added that the 海角视频 continued to offer healthy medium- to long-term growth opportunities as "pent-up demand for infrastructure investment is satisfied".
The deal will take Breedon, which is based near East Midlands Airport in north Leicestershire, close to the £1 billion turnover mark.
It takes in 100 operations across six divisions in Scotland, Wales, North-East England, Norfolk, the East Midlands, and Yorkshire, which in the year to 2018, had revenues of £178 million.
The deal does not include two large cement production plants at Rugby, in Warwickshire and South Ferriby, North Lincolnshire.
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The latter has been overhauled following a devastating tidal surge in the River Humber in 2013, when a year's production was lost.
Breedon has almost 3,000 staff around the 海角视频 and Ireland, which will grow to 3,600, and has seen revenues and profits rise in recent years despite 海角视频 political and economic uncertainty.
Revenues were up eight per cent in the first 10 months of 2019 at around £800 million.
It operates two cement plants as well as quarries, asphalt plants and ready-mixed concrete plants, and also has slate production, concrete and clay products manufacturing, contract surfacing and highway maintenance operations.
Following the acquisition the group will have more than 1 billion tonnes of mineral reserves and resources.
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Breedon chief executive Pat Ward 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.
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“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 generation of the enlarged group.”
Breedon has agreed to buy the assets for £155 million in cash and by taking on £23 million of lease liabilities.
Completion is expected in the second quarter of 2020, subject to a TUPE consultation process with staff.