Two rival UK construction outfits have concluded a deal which will see materials giant Breedon acquire Irish firm Lagan Group for a fee of £455 million.
Breedon’s conditional agreement to buy Belfast-based Lagan is the latest in a series of acquisitions and represents Breedon’s first venture into the Irish market.
Under the deal, the firm will take control of Lagan’s modern cement plant, along with nine active quarries, 13 asphalt plants and nine ready-mixed concrete plants.
The acquisition will boost Breedon’s overall headcount to 3,000 in the UK.
Breedon will finance the acquisition through a combination of a new £150 million loan, a new £350 million revolving credit facility, and a £170 million equity placing.
Peter Tom, executive chairman of Breedon, said: “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.
“We believe it has the potential to add significantly to the group’s performance and prospects, and we are looking forward to working with our new colleagues to deliver further value for our investors.”
