Breedon buys asphalt production and surfacing business in North Wales

Construction materials group Breedon has acquired North Wales-based asphalt production and contract surfacing business Roadway Civil Engineering & Surfacing for up to £13.5m.

Breedon will pay £10.8m in cash for Roadway on completion, with up to £2.7m of deferred consideration to come over the next five years, dependent on performance.

In the year ended 31 July 2018, Roadway made a pre-tax profit of £1.3m on revenues of £5.1m. However, Breedon noted that this was before the introduction of the new asphalt production capabilities.

Roadway, a family-run business based in Llay near Wrexham, will keep its key management team following the acquisition.

Chief executive Pat Ward said: "This is a further step in our regional expansion, acquiring an integrated asphalt and contract surfacing business in an area of the UK where we have been seeking to strengthen our presence for some time.

"It demonstrates our consistent ability to secure value-enhancing acquisitions and we remain confident of being able to continue adding value in this way."

As of 0910 BST, Breedon shares had inched ahead 0.32% to 65.51p.