It is understood Breedon acquired Barr Quarries in a deal worth £20.8m in cash. Completion of the agreement is expected by the end of the month.
Barr Quarries employs around 130 people and has its headquarters in Cumnock. It operates 11 quarries, five asphalt plants and six ready-mixed concrete plants, extending from Dalry in the north, Stranraer in the south and to Moffat in the east. It also has approximately 57 million tonnes of mineral reserves and resources, while the firm also operates a successful contract surfacing business.
The acquisition will give Breedon a fifth self-contained region in Scotland.
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In 2013, Barr Quarries generated sales of £25.5m with an underlying operating profit of £2.7m. It continued to perform well in 2014, with year-on-year sales ahead in the first half.
Peter Tom CBE, Chairman of Breedon, said: "Scotland has played a vital part in Breedon's success and we have made significant investments there over the past four years.
"With the uncertainties surrounding the independence issue now behind us, we believe our prospects north of the border have never been brighter and we can look ahead with renewed confidence.
"Our acquisition of Barr Quarries is a clear demonstration of our long-term commitment to this important market.
"Barr Quarries represents a great opportunity to secure some rare assets in a brand-new region, which perfectly complements our existing operations in Scotland. It's an excellent business with a fine heritage, and great people – all of whom we look forward to welcoming to the Breedon family."
Philip Cheevers, Chairman of Barr Holdings Ltd, added: "I am pleased with the sale of our Quarry interests to Breedon. This will give the quarry business the opportunity to further grow and develop under the umbrella of a major aggregates company and we wish them every success.
"At Barr we will continue to focus on our core Construction business which is performing well and on our Environmental business which has made significant progress over the last few years and is trading very strongly."
(JP/MH)
