Breedon Group Plc - London Ready-Mixed Concrete Joint Venture
Breedon Group ("Breedon") to form
London ready-mixed concrete joint venture
Breedon Southern Limited, part of Breedon Group plc, today announces plans to form a joint venture in London trading as Capital Concrete Limited ("Capital Concrete"), with Robert Brett & Sons Limited ("Brett") and the Capital Concrete senior management.
Three of Breedon's existing ready-mixed concrete assets will be combined with those of Capital Concrete, Brett's established ready-mixed concrete operation in London. The enlarged business, which will continue to trade as Capital Concrete, will provide both partners with a strong platform from which to develop their offerings to the London market.
Capital Concrete currently operates seven ready-mixed concrete plants in Bow, Croydon, Romford, Rainham, Wembley, Silvertown and Staines. Breedon will contribute its plants in Cricklewood, Feltham and Enfield, together with £3.1 million in cash, in return for a 43 per cent interest in the joint venture. The balance will be owned by Brett (43 per cent) and management (14 per cent).
Commenting on the agreement Pat Ward, group chief executive of Breedon, said: "We have had a longstanding ambition to expand our footprint in the UK's largest construction materials market. This joint venture enables us to secure immediate critical mass in Greater London, in collaboration with an experienced local partner, with the potential to develop a business of significant scale in the capital over the next few years.
"We are very much looking forward to working with the outstanding management team in Capital Concrete and this also gives us a great opportunity to strengthen our relationship with Brett."