Adelaide Brighton will buy concrete businesses in South Australia and Queensland which, when combined with the Penrice Quarry buy, will cost $174 million.
Construction material firm Adelaide Brighton will buy concrete businesses in South Australia and Queensland.
Adelaide Brighton will buy Direct Mix Concrete and Southern Quarries in South Australia, and the concrete, sand, transport and comment operations of Townsville-based BM Webb Construction Materials.
The combined cost of the acquisitions and Adelaide Brighton’s recent purchase of the Penrice Quarry at Angaston in South Australia will be $174 million.
Chief executive Martin Brydon said the deal significantly strengthened the company’s position in South Australia and gave it an important staging post for distribution in north Queensland.
The acquisitions follow a $112 million investment program to boost efficiencies and capacity among Adelaide Brighton’s existing business.
Mr Brydon said the purchases would add to earnings from 2014 and were part of the company’s growth strategy.
“Adelaide Brighton has had a consistent approach of investing for improvement and growth while returning surplus capital, a strategy which has supported strong total shareholder returns for more than a decade,” he said.