Mining company Hargreaves Services is moving into civil engineering with the acquisition of CA Blackwell for £11.85M.
The terms of the deal are a net cash payment of £8.5m and the transfer to the Blackwell shareholders of a Blackwell-owned property at Earls Colne with a market value of £3.35m.
Hargreaves says earthworks and civil engineering experts Blackwell has operations that are highly complementary to its own, particularly in terms of equipment and fleet. Blackwell operates a number of mining and quarry contracts.
Hargreaves chief executive Gordon Banham said: “The acquisition of Blackwell extends the reach of Hargreaves into the UK earthworks and civil engineering sector bringing further diversification to the Group and offering an attractive return on capital. The business is complementary to and synergistic with our existing mining operations and offers flexibility with our existing fleet of heavy plant, providing further opportunities to diversify the Group’s operational focus.
“We are delighted to welcome the Blackwell team into the Group and look forward to combining our expertise to work with them on the growing market opportunities in the UK, including the enhancement and renewal of the nation’s critical infrastructure.”