Breedon Aggregates has announced it is to buy Hope Construction Materials for £336M.
Hope has 152 concrete plants nationwide as well as five aggregates quarries and four regional aggregates depots. It has recently developed a new concrete for a rail project in Scotland.
Breedon executive chairman Peter Tom said: “The acquisition of Hope transforms Breedon into the UK’s leading independent building materials group. We’re creating a vertically integrated business with one of the country’s largest cement plants, nearly 60 quarries, more than 200 ready‐mixed concrete plants and around 750 million tonnes of mineral reserves and resources – together with access for the first time to the rail-fed sector of the market. Under Amit’s leadership, Hope has delivered an outstanding performance over the last three years and has become a formidable competitor in the UK market. Together we will be an even stronger business, complementing one another geographically, operationally and culturally.”
Hope’s Chairman Amit Bhatia will be appointed to the Breedon board as a non-executive director. He said: “The growth of Hope is testament to the incredible amount of hard work put in by everyone in the business over the past three years. The combination with Breedon builds on that by creating a new, independent force in the construction materials sector with superior growth prospects and greater opportunities thanks to its broader product mix, strong customer offer and extended geographic footprint. Both companies are entrepreneurial and energetic and this transaction will combine the best of both teams and cultures. I believe strongly in Peter’s leadership and in the potential of the enlarged business, and am delighted to be joining the board as well as retaining a considerable stake in the combined business.”
The acquisition is expected to be completed by next summer.