Breedon agrees £455m deal for Lagan Group

Northern Ireland building firm Lagan Group has been acquired by one of the UK’s largest construction firms in a deal that is worth £455m.

Breedon, the largest independent construction materials business in the UK, announced the acquisition today (17 April) as it enters the Irish construction market. Lagan Group which is owned by Kevin Lagan, employs 750 people and made a profit of £46m last year. The deal concerns the building materials divisions, with Lagan Homes being retained by Lagan.

The group is not connected to the Lagan Construction Group, which is run by Michael Lagan. The family business was separated into different parts several years ago. In February, four businesses within Lagan Construction Group went into administration putting up to 200 jobs at risk.

Lagan has a cement plant in Kinnegad in Westmeath, nine active quarries, 13 asphalt plants and nine ready-mixed concrete plants. Lagan generated revenues of £249m in 2017. 

The acquisition will see Breedon employ nearly 3,000 people, operate two cement plants, approximately 70 quarries, 40 asphalt plants, 200 ready-mixed concrete plants and utilise around 870 million tonnes of mineral reserves and resources.

Commenting on the acquisition, Peter Tom, Breedon’s executive 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’s Group chief executive, added: “Lagan represents a unique opportunity to enter a growing market with immediate scale and excellent opportunities for expansion. 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 firstclass 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.”

Kevin Lagan, chairman of Lagan Group, said: “I’d like to thank our committed and passionate staff for the role they have played in the growth of Lagan Group and I wish them every success as they enter an exciting new chapter with Breedon, who I am confident will build on that success, supporting the development of the business in the years ahead.”