Construction materials supplier GRS Roadstone has acquired a 50 per cent stake in Devonshire rival Ocean Blocks and Aggregates Ltd for an undisclosed sum.
The deal will enhance Slough-based GRS’ ability to serve the South West and its capacity to supply secondary aggregates to the South East via its rail and marine freight network.
It represents the first significant investment for GRS since the firm completed a £60 million refinancing deal with Wells Fargo Capital Finance in April.
The transaction opens new local markets for Plymouth-based Ocean which has access to millions of tonnes of granite arising as a by-product of Imerys’ China clay mining operation at Lee Moor.
Ocean directors Andrew Lakeman, his son Edward, and Leigh Genge will remain on the Board along with directors from GRS.
Under the new partnership Ocean will also work closely with GRS’ South West subsidiary, Maen Karne.
Currently, the construction industry in the UK uses around 250 million tonnes of aggregates each year, with less than 5 per cent from secondary sources. “GRS sees huge growth potential for the material,” said GRS.
“Our new partnership with Ocean is a great addition to our portfolio,” said Jon Fisher, chief executive of GRS. “It gives us a complementary presence in Devon and Cornwall and opens up opportunities to supply premium secondary aggregates to housing and infrastructure projects across the country, easing the pressure on primary aggregates.
“Better still, GRS shares the same ethos as Ocean and we are looking forward to working with the founders and the whole team to support their growth as an independent business, both locally and nationally.”
Genge added: “Coming together also means we can continue to grow our business with the agility and entrepreneurial spirit of an independent operator.”
Enjoyed this? Try Utilities firm Caecillian completes management buyout
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.