Opencast mining group Hargreaves has purchased CA Blackwell for £11.85 million, it has been announced.

Blackwell, a leading earthmoving and remediation contractor, has been operating in the industry for over 50 years.

Last year it turned over a total of £89m, making a £3.3m operating profit.

As part of the acquisition, Hargreaves will pay £8.5m in net cash with £5.25m to be held in escrow pending settlement on a number of historic contracts and the sale of two other investment properties with a book value of £6.5m.

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Gordon Banham, CEO of Hargreaves, 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."

(LM/MH)