Cement maker Adelaide Brighton has spent $174m on new acquisitions as it looks to break into new markets.
Adelaide Now reports that following its recent acquisition of Penrice Soda’s quarry at Angaston, Adelaide Brighton will also buy South Australia’s Direct Mix Concrete (DMC) and Southern Quarries; and Townsville’s BM Webb Construction Materials.
The figure of $174m includes all three purchases. However, the company did not disclose the individual purchase prices.
The purchase of BM Webb Construction Materials allows Adelaide Brighton to break into the north Queensland cement distribution market. The company currently produces around 60,000 cubic metres of concrete per annum. It has hard rock reserves which will last more than 50 years.
Direct Mix Concrete and Southern Quarries has 13 concrete plants as well as hard rock quarry and sand operations. It produces more than 200,000 cubic metres of premixed concrete per year.
As the SMH reports, Adelaide Brighton chief executive Martin Brydon described the purchase of DMC as a defensive move to help utilisation at Brighton’s Birkenhead facility.
“It locks in cement supply into perpetuity but that’s not the reason we sought to acquire it [DMC],” he said.
Image: Adelaide Now