Breedon confirms talks with Lagan
The UK's Breedon Group has confirmed it's in talks to acquire all or a significant part of Northern Ireland building materials group Lagan.
But Breedon said that there's no certainty that an acquisition will proceed. Breedon is the UK's largest independent construction materials group and employs about 2,300 people.
Lagan Group, with annual sales of almost €400m, is controlled by Kevin Lagan. He also owns Lagan Homes, which is connected to the wider Lagan group.
"Breedon notes that it regularly engages with companies in its sector and it can confirm that it is in discussions with Lagan and its major shareholders in connection with a possible acquisition of a substantial part of the Lagan business," the AIM-listed Breedon Group said in a statement issued to the stock exchange yesterday.
"There can be no certainty that the possible acquisition will proceed, nor as to the terms of the possible acquisition. A further announcement will be made as appropriate."
Breedon operates the UK's largest cement plant, two import terminals, about 60 quarries, 30 asphalt plants and 200 ready-mixed concrete plants. It also has three concrete-products plants. Its quarries have reserves of more than 750 million tonnes. Breedon and a Lagan subsidiary have a joint asphalt venture in Britain.
Breedon's strategy is to continue growing organically and via acquisitions of heavyside construction materials firms in the UK, it noted.
Last year, the Irish Independent revealed that Lagan Homes plans to enter the home building market south of the border in 2018.