Breedon buys Lagan for £455m

Cornelia Mascio
Aprile 17, 2018

The deal will create one of the UK's leading independent construction materials group in the United Kingdom and Ireland, and extend Breedon's footprint in Ireland.

Breedon has entered into a conditional agreement to acquire Lagan Group (Holdings) on a cash- and debt-free basis.

Commenting on the announcement of the deal, Kevin Lagan, chairman of Lagan thanked staff for the role that they played in the growth of the company.

A construction materials business headquartered in Belfast is to be acquired for £455m by Breedon Group in a move set to create a company employing almost 3,000 workers.

The Lagan brand was established by Mr Lagan's father, Peter, in 1960 when he opened his first quarry. His two sons Kevin and Michael took over the running of the business, expanding the group aggressively.

Founded in 1960s on the outskirts of Belfast, the company's turnover has grown to £272m past year with combined earnings (EBITDA) of approximately £55m.

'We believe it has the potential to add significantly to the Group's performance and prospects, and we are looking forward to working with our new colleagues to deliver further value for our investors'. They later went their separate ways, dividing the assets between them. "It significantly strengthens our cement offer, adds to our mineral and downstream resources, brings us a bitumen import/export business and adds real weight to our contract surfacing operations", said Paul Ward, Breedon's chief executive.

He added that he would now pursue "a managed growth strategy" with Lagan Homes and FastHouse, a modular house business where he is the majority shareholder.

Lagan Homes, one of the largest house-builders in Northern Ireland, with a long-standing reputation for delivering quality homes, has plans to develop its markets in Ireland and Britain, where it has established a strong regional presence.

"Lagan is well-run, well-invested, with an experienced management team and a strong track record". Its culture is complementary to our own, with a sharp focus on customer service, a firstclass workforce and a commitment to safety, which is a key priority for us. It also provides Breedon with an enhanced platform for further organic growth and bolt-on acquisitions.

The group is unrelated to Lagan Construction Group, which is run by Kevin's brother Michael Lagan.

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