Breedon : completes Tarmac asset swap

NEWS RELEASE

2 July 2018

BREEDON COMPLETES ASSET SWAP WITH TARMAC

Further to the announcements made on 13 December 2017 and 26 April 2018, Breedon Group is pleased to announce that it has completed an asset swap with Tarmac which secures 25 million tonnes of additional mineral reserves and around 50,000 tonnes of additional annual asphalt capacity in four key UK locations.

The Group has acquired from Tarmac three quarries near Inverness, Penrith and Wrexham, together with a quarry and asphalt plant near Porthamadog, in exchange for 23 of its ready-mixed concrete plants and a payment to Tarmac of £6.1 million in cash.

Commenting on today's announcement Pat Ward, Breedon's Group Chief Executive, said:

"This is an excellent, margin-enhancing deal for us and fully in line with our strategy of strengthening our asset base and improving the quality of our earnings.

"It gives us a significant quantity of high-quality mineral reserves, including a scarce source of high PSV stone and a new asphalt plant in West Wales capable of producing up to 50,000 tonnes of material a year. It also gives us a significant new source of hardstone in the heartland of our Scottish business, at Daviot Quarry near Inverness where we already have an asphalt plant.

"At the same time it streamlines our concrete network and enables us to release value by relinquishing peripheral plants which wecouldn't supply internally and whichin many cases were on short-term leases.

"This means we have become much less dependent on third-party aggregates. We can now supply more of our concrete and asphalt plants with our own minerals, with the secure backing of nearly 900 million tonnes of reserves and resources across the UK and Ireland.

"It'salso a great example of how we can work with our larger peers-in this case Tarmac, a subsidiary ofone of the world's most successful global building materials companies -to benefit customers and other stakeholders on both sides of the deal."

Following today's deal, Breedon operates more than 70 quarries, 40 asphalt plants and around 180 ready-mixed concrete plants, extending from the north of Scotland to the west of Ireland and the south-east of England.

Completion of this transaction follows the conclusion of investigations by the Competition and Markets Authority, which has accepted remedies proposed by Tarmac-and accepted by Breedon-in relation to any potential competition concerns arising from it.

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Notes to editors

Breedon Group plc is a leading construction materials group in the UK and Ireland. It currently operates two cement plants, more than 70 quarries, 40 asphalt plants, around 180 ready-mixed concrete and mortar plants, nine concrete and clay products plants, four contract surfacing businesses, six import/export terminals and two slate production facilities.

The group employs nearly 3,000 people and has nearly 900 million tonnes of mineral reserves and resources. The group's strategy is to continue growing organically and through theacquisition of businesses in the heavyside construction materials market.

Tarmac assets acquired in this transaction:

Daviot Quarry, Inverness

Low Plains Quarry, Penrith

Borras Quarry, Wrexham

Minffordd Quarry & Asphalt Plant, near Porthmadog

Breedon ready-mixed concrete plants divested in this transaction:

Alrewas	Llanelli
Banbury	Llynclys
Boroughbridge	Meriden
Bournemouth	Pembroke
Briton Ferry	Portsmouth
Cardigan	Scorton
Carmarthen	Shawell
Colchester	Southampton
Dumfries	Stancombe
Exeter	Tredegar
Halecombe	Wellington
Llandybie
For further information:
Breedon Group plc	Cenkos Securities plc
Pat Ward, Group Chief Executive	Max Hartley (NOMAD & joint broker)
Rob Wood, Group Finance Director	020 7397 8900
01332 694444
Numis Securities (joint broker)
Stephen Jacobs, Head of Communications	Ben Stoop/Heraclis Economides
07831 764592	020 7260 1000