Breedon Aggregates to buy Hope Construction for £336m

Breedon Aggregates has agreed to take over its retail rival Hope Construction Materials for £336m.

In a conditional agreement announced on Wednesday, Breedon – the UK’s largest aggregates business – will buy Hope from current owner Cortolina Investments.

The company said it will create the UK’s leading independent producer of cement, concrete and aggregates.

In a separate announcement on Wednesday morning, Breedon said it remained in a strong trading position at the end of the 10 month period to 31 October 2015.

The group said while Scottish road spending remains subdued, there are several large contracts due to commence and trading conditions in England remained strong.

In the 10 months, sales volumes of aggregates were up 19%, asphalt 23% and concrete 20% compared to last year.

Unaudited group revenue for the same 10 month period increased 22% to £274m, it reported.

Breedon said its underlying EBITDA for the full year is expected to be at the top end of market expectations, assuming favourable road-building weather for the rest of the year.

As of 13:40 on Wednesday, shares in Breedon Aggregates were up 910.3% to 64.62p.