Breedon has completed the acquisition of Belfast-based Lagan Group in a deal worth £455 million.

As part of the agreement, Breedon will fund the purchase with a new £150m term loan, a new £350m revolving credit facility (which replaces Breedon's existing £300m revolving facility) and a £170m equity placing.

Lagan is a leading supplier of construction materials and contract surfacing in Ireland and the UK, with a modern cement plant in Kinnegad, nine active quarries, 13 asphalt plants and nine ready-mixed concrete plants. In the year ended 31 December 2017, the Group generated revenues of £249m and EBITDA of £46m.

Following the acquisition, Breedon will become a leading construction materials group in the UK and Ireland, operating; operate two cement plants, around 70 quarries, 40 asphalt plants, 200 ready-mixed concrete and mortar plants, nine concrete and clay products plants, four contract surfacing businesses, six import/export terminals and two slate production facilities.

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In addition, the combined Group will employ nearly 3,000 people and have around 870 million tonnes of mineral reserves and resources.

Peter Tom CBE, Breedon's Executive Chairman, said: "We are delighted to have completed our largest acquisition to date and particularly pleased that it has been so strongly supported by our shareholders.

"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."

Pat Ward, Breedon's Group Chief Executive, added: "Lagan represents a unique opportunity to enter a growing market with immediate scale and excellent opportunities for expansion. It significantly strengthens our cement offer, adds to our mineral and downstream resources, brings us a bitumen import/export business and adds real weight to our contract surfacing operations.

"Lagan is well-run, well-invested, with an experienced management team and a strong track record.  Its culture is complementary to our own, with a sharp focus on customer service, a first-class workforce and a commitment to safety, which is a key priority for us.

"From a strategic perspective, it provides us with a stronger platform from which to pursue further organic growth and bolt-on acquisitions."

(LM)