UK CONSTRUCTION COMPANY Breedon Group has announced plans to acquire Belfast-based building materials firm Lagan for £455 million (€526 million).
The deal, which will be financed by new loans and equity, will allow Breedon to enter the Irish market and expand its business.
Lagan is one of Ireland’s leading suppliers of construction materials, with a cement plant in Kinnegad, Co Westmeath, as well as nine quarries, 13 asphalt plants and nine ready-mixed concrete plants.
In 2017, the company, which is controlled by Kevin Lagan, generated revenues of £249 million with net earnings of £46 million. It employs around 750 people.
Lagan said that he is confident Breedon will “build on the group’s success” and support the development of the business in the future.
The company was founded in 1960 by Lagan’s father Peter after the family’s haulage business acquired White Mountain Quarry outside Belfast.
Since then, the group has expanded into the production of asphalt, concrete and cement, with a number acquisitions in Ireland and the UK.
As part of the deal with Breedon Group, Kevin Lagan will retain control of the Lagan Homes business, which builds residential properties throughout Northern Ireland and England.
Pat Ward, Breedon’s chief executive, said that the purchase of Lagan represents a “unique opportunity to enter a growing market” with possibilities for expansion and more acquisitions in the future.
Stockbroker Davy said that Breedon Group will become an “operator of significance” in the UK and Ireland following this acquisition, with two cement plants, 70 quarries, 40 asphalt plants, 200 ready-mixed concrete plants and a combined workforce of nearly 3,000.
Last year, the group recorded revenues of £652.4 million with profits of £71.2 million. It is currently valued at around £1.2 billion on London’s junior stock exchange.