Acquisition
November 18 2003 - 1:00AM
UK Regulatory
RNS Number:1652S
Aggregate Industries PLC
18 November 2003
Embargoed until 7:00am, Tuesday, 18 November 2003
Aggregate Industries plc
Major Acquisition in Nevada USA
Aggregate Industries announces the acquisition of a major aggregate, asphalt and
contracting business located in Las Vegas, Nevada. This strategically important
acquisition continues the Group's successful strategy of earnings-enhancing
bolt-on acquisitions.
The purchase comprises the shares of Southern Nevada Paving Company Inc., Nevada
Paving, Inc. and Valley Trucking, Inc. ("SNP"). The consideration, paid in
cash, amounts to $64.1m subject to an adjustment for working capital. Net
assets at 31 December 2002 amounted to $47.6m stated before any review of
valuation of plant and mineral reserves. Turnover in the year ended 31 December
2002 amounted to $101m and the businesses reported earnings before interest,
tax, depreciation and amortisation of $16.9m and a pre-tax profit of $9.3m.
SNP owns a freehold half-interest in the 530 acre Sloan Mountain Quarry, which
has more than 650m tons of high quality limestone. SNP also operates four
asphalt plants and is a leading asphalt paving operator.
In the year ended 31 December 2002 the business produced 3.6m tons of aggregate
and recycled aggregate, 1.2m tons of asphalt and laid approximately 1m tons of
asphalt.
SNP will become a sixth region of Aggregate Industries' US operations, serving
the greater Las Vegas area, which is one of the fastest growing metropolitan
areas in the US. Aggregate Industries intends to establish a significant
presence in this rapidly-expanding economy by exploiting its substantial
aggregate reserves through increased downstream distribution and by making
further selective bolt-on acquisitions.
Peter Tom, Group Chief Executive of Aggregate Industries plc, commented:-
"This is a major boost to our US market share in aggregate, asphalt and asphalt
paving. Las Vegas represents a significant geographic expansion into a region
which is unaffected by seasonal variations and offers Aggregate Industries
considerable opportunities to develop both organically and by acquisition.
"The creation of a sixth regional operation in the US, in an area of rapid
economic growth, is a perfect example of our strategy of increasing shareholder
value by making judicious acquisitions in fast-growing markets."
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Further information about Aggregate Industries can be found at www.aggregate.com
Contacts: Peter Tom, Group Chief Executive
Chris Bailey, Group Finance Director
Aggregate Industries plc Tel: 01530 816600
Steve Jacobs/Meg Baker
Financial Dynamics Tel: 020 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange
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