UK construction materials giant Breedon Group has snapped up Roadway Civil Engineering and Surfacing in North Wales.
The £13.5m deal has seen them take on the asphalt production and contract surfacing business based near Wrexham.
Roadway is a family-run business in Llay that was founded in 2000 and specialises in local authority term maintenance, minor road maintenance schemes and associated civil engineering works.
The purchase of the business coincides with the opening of a new asphalt plant on its Wrexham site.
Key management will remain with the business.
The total consideration, subject to completion adjustments, comprises £10.8m payable in cash on completion, together with up to £2.7m of deferred consideration payable in cash on performance over the next five years.
In the year to 31 July 2018 – prior to the introduction of its new asphalt production capability – Roadway reported underlying EBITDA of £1.3m and profit before tax of £1.3m on revenues of £5.1 million.
Mike Pearce, managing director of Breedon Southern, said: “This acquisition significantly strengthens our contract surfacing operations and establishes Breedon as a fully integrated business in North Wales.
“The Wrexham plant will expand our asphalt capacity in the region, complementing our units at Dowlow, Minffordd and Leaton, and enable us to offer a full asphalt supply and lay service throughout North Wales, Shropshire, Cheshire and Merseyside.
"Roadway also provides an additional route to market for aggregates from our quarries at Minffordd, Borras, Denbigh and Leaton.
“We are particularly pleased that Roadway’s management team has committed to remain with the business.”
Latest interim results for Breedon, which is headquartered near East Midlands Airport in north Leicestershire, showed a turnover of £447.4m in the year to June 30, 2018 - up 18 per cent on the previous year.
Pre-tax profits were up a third at £39.5m.
It is now the is the biggest independent construction materials business in Britain, with a nationwide network of quarries and aggregates operations extending from Stornoway in the Hebrides to Hampshire in the south.
Its contract surfacing and maintenance business undertakes minor road surfacing projects as well as major infrastructure contracts.
