Leicester Tigers partners Breedon has agreed to buy leading construction materials firm Lagan Group in a £455 million deal, the company announced on Tuesday morning.
Breedon said the move would create a leading independent construction materials group in the UK and Ireland.
The purchase includes a modern cement plant in Kinnegad, nine active quarries, 13 asphalt plants and nine ready-mixed concrete plants.
Peter Tom CBE, Breedon executive chairman and Tigers chairman, said: “We are delighted to have completed our largest acquisition to date and particularly pleased that it has been so strongly supported by our shareholders.
“Over the last eight years we have pursued a successful buy-and-build strategy which has established Breedon as the largest independent construction materials business in the UK and the acquisition of Lagan is another strategic step for us.
“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.”
Pat Ward, Breedon group chief executive, added: “Lagan represents a unique opportunity to enter a growing market with immediate scale and excellent opportunities for expansion.
“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.
“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 first-class workforce and a commitment to safety, which is a key priority for us.
“From a strategic perspective, it provides us with a stronger platform from which to pursue further organic growth and bolt-on acquisitions.”
Breedon, the UK’s largest independent construction materials group, whose head offices are based in North Leicestershire, have been an official partner for Tigers for the past two seasons.
Tigers and Breedon announced that the company would sponsor the South Stand at Welford Road, with the Breedon Stand unveiled ahead of the derby clash with Northampton Saints.
