‘No pyrite-linked’ unit part of approach for Lagan
The approach for Belfast-based Lagan Group — one of Ireland’s largest cement, building products, and contractors — said an approach by the UK stock-market listed Breedon for part of its business does not involve any Lagan company involved in legal disputes over the use of pyrite in homes and other premises.
Lagan confirmed it was mulling an “unsolicited approach” made for a trade sale for part of its business by London AIM-listed Breedon but that “no Lagan company associated with the pyrite litigation is connected with the Breedon approach”, a spokeswoman added.
The potential acquisition of some of Lagan companies by Breedon — the UK firm has a stock market value of £1.1bn (€1.24bn) — should face few regulatory hurdles if it went ahead because Breedon though linked to Lagan through the Whitemountain business has little to no building contracts across the island. Davy analysts said Breedon has the financial resources “albeit an equity raise may be required depending on the size” of any deal. Shares in Breedon rose by over 0.5%.
Citing the execution of its acquisition of Hope Construction in 2016, Goodbody said Breedon is “a quality management team”.
Lagan contracts include work at airports at Shannon, Dublin, and Belfast, as well as numerous road and tunnel contracts across the island. Davy said its Lagan Cement is the third-largest Irish cement manufacturer; its Lagan Products unit is a major sand producer and roof tiles-bricks-and-concrete blocks maker; its Lagan Asphalt unit has terminals in Belfast and Dublin for bitumen; owns the large Welsh Slate business; and that Lagan Homes is the North’s largest home builder.
