Ennstone Johnston buys up remaining 49% shareholding of Berwyn Granite Quarries
Ennstone announced today that it has bought Berwyn Granite Quarries for £18m.
Its subsidiary, Ennstone Johnston, will fund the acquisition of 49% minority shareholding from Tarmac from the group's existing banking facilities. The £18m is payable in cash.
In June 2006, Ennstone raised £25.5m (net of expenses) to reduce the net indebtedness of the group and to allow it to make acquisitions, including the potential integration of minority holdings in subsidiary undertakings such as Berwyn.
Ennstone obtained the initial 51% holding in Berwyn when it acquired Johnston Group in November 2004, allowing it to expand into high value products such as asphalt.
Berwyn operates a hard rock quarry at Leaton, Telford. For the year ended 31 December 2005, Berwyn reported turnover of £8.5m and a pre-tax profit of £2.5m. As at 31 December 2005, the gross assets of Berwyn were £6.3m.
Following the acquisition, Berwyn will become a wholly owned subsidiary of Ennstone Johnston.
Vaughan McLeod, chairman commented: “We are very pleased to have obtained 100% ownership of the Leaton quarry. This quarry, operated by Berwyn, is a key high quality stone asset and is essential to the delivery of our Midlands asphalt strategy. This acquisition will give the group total control over the development of this high quality reserve and significantly enhance the future development of the group.”