A South Yorkshire-based construction firm has been sold to another business in the same sector in a deal worth £336 million.
Hope Construction Materials, which has eight sites across Sheffield, Rotherham, Barnsley and Doncaster, has entered into a conditional agreement to sell the business to Breedon Aggregates Limited in Derby.
The enlarged business will operate one of the country’s largest cement plants, nearly 60 quarries and more than 200 ready-mixed concrete plants. In addition, it will have around 750m tonnes of mineral reserves and resources.
Company bosses said the combination will create a building materials group with a broader product mix, greater geographic spread and enhanced growth prospects.
Under the terms of the transaction, the owners of Hope will become a significant shareholder in Breedon and Amit Bhatia, chairman of Hope, will take a seat on the board of the enlarged company.
Mr Bhatia said: “Both companies are entrepreneurial and energetic and this transaction will combine the best of both teams and cultures.”
Peter Tom CBE, Breedon’s executive chairman, added: “This acquisition transforms Breedon into the UK’s leading independent building materials group.”
He added the move is “well-timed” with UK construction output “forecast to expand by around 15 per cent over the next four years and volumes of all our major products expected to grow strongly. We are confident that we will be able to continue delivering significant value for our shareholders.”