British construction company Breedon Group has announced that it has acquired fellow industry operator Lagan Group in an attempt to bolster its position in the UK and Irish construction market.
The deal, valued at £455mn, will be financed by a combination of a £150mn loan, £170mn in Breedon equity, and through the establishment of a new £350mn revolving credit facility, replacing the company's existing £300mn revolving facility.
“Over the last eight years we have pursued a successful buy-and-build strategy which has
established Breedon as the largest independent construction materials business in the UK and
the acquisition of Lagan is another strategic step for us,” said Peter Tom, Breedon's Executive Chairman.
The purchase of Lagan marks Breedon's largest acquisition to date, significantly expanding its operations, particularly throughout Ireland.
“Lagan represents a unique opportunity to enter a growing market with immediate scale and
excellent opportunities for expansion,” said Pat Ward, Executive Chairman of Breedon.
Breedon will acquire Lagan's portfolio that icludes nine active quarries, a cement plant, 13 asphalt plants and nine ready-mixed concrete plants.
With a team of 750 employees, Lagan generated revenues of £249mn in 2017, with operating profits of £46mn.