Adelaide, Dec 11, 2007 AEST (ABN Newswire) - Adelaide Brighton Ltd (ASX: ABC) announced today that it has acquired a 50% share of Mawsons, a concrete and quarry business operating in regional Victoria and southern New South Wales. Mawsons is the largest independent ready mixed concrete and quarry operator in the region, generally holding leading market positions in markets served.
Adelaide Brighton expects the investment to be earnings per share accretive from the date of acquisition.
Mawsons
Mawsons has significant long-term quarry reserves and currently operates five hard rock quarries producing 1.6 million tonnes per annum.
Concrete sales volumes are approximately 200,000 cubic metres per annum from 18 fixed and three mobile ready mixed concrete plants. The majority of concrete aggregates are supplied from Mawsons own quarries.
Mawsons will continue to be managed from Cohuna and will continue to operate under the Mawsons brand.
Commenting on the acquisition, Mark Chellew, the Managing Director of Adelaide Brighton said, "the joint venture with Mawsons gives Adelaide Brighton a strong regional presence in the aggregates and ready mixed concrete markets in Victoria".
Mr Chellew said, "I am pleased that the existing management team will continue to run the business".
Strategic intent
The 50% ownership of Mawsons gives Adelaide Brighton a strong regional presence in Victoria and southern New South Wales, and continues the Company's implementation of a strategy of developing downstream positions in vertically integrated construction materials markets.
The acquisition will be funded by debt.
Contact
MS LUBA ALEXANDER
GROUP CORPORATE AFFAIRS ADVISER
TELEPHONE: +61-8-8223-8005
MOBILE: +61-418-535-636
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