Breedon Aggregates announced this morning that it has agreed definitive terms to acquire Hope for £336 million on a cash and debt-free basis.
Hope is a leading independent construction materials supplier in the UK with a national footprint of over 160 operational sites, including the Hope cement works in Derbyshire, five quarries and 152 concrete plants.
In the last 12 months, Hope sold 1.6 million tonnes of cement, 4.7 million tonnes of aggregates and 2.3 million cubic metres of concrete, generating revenue of £285.6 million.
The Acquisition is conditional upon the approval of the UK Competition and Markets Authority and is expected to complete in February 2016.
Amit Bhatia, Hope’s Chairman, 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.”
Peter Tom, Breedon’s executive chairman, 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.”
He added: “We very much look forward to welcoming everyone at Hope to the Breedon family.”