Carson McDowell Legal Advisors for Lagan Group shareholders on Landmark Transaction with Breedon
17 April 2018
Carson McDowell has acted as lead legal advisors for the shareholders in Lagan Group in agreeing the sale of the sale of the group to Breedon Group.
Commenting on the transaction, Richard Gray, Joint Head of Corporate at Carson McDowell said: “We are proud to have been chosen by the shareholders in Lagan Group on this landmark transaction. It was a massive team effort, working with Kevin Lagan and his team but we are delighted to have helped deliver such a good outcome. We wish Lagan Group every continued success as part of the Breedon group.”
The deal sees Breedon, the UK’s largest independent construction materials group, acquiring Whitemountain, Lagan Cement, Lagan Brick, Lagan Asphalt and Welsh Slate. Lagan Homes does not form part of the sale.
Breedon has an established relationship with Lagan Group, having operated a successful joint venture with its Whitemountain business in Scotland. The combination of Breedon and Lagan’s materials interests will create a workforce of circa 3,000 and turnover of more than £900m.
Lagan Group was formed in the 1960s on the outskirts of Belfast by Kevin’s father, Peter Lagan, when he opened his first quarry at Whitemountain. Under the chairmanship of Kevin Lagan it has grown its turnover to £272 million, with combined earnings (EBITDA) of approximately £55 million in 2017.
Following the disposal of the substantial materials business to Breedon, Kevin and his family intend to pursue a managed growth strategy with the Lagan Homes and FastHouse businesses, which are being retained.
Lagan Homes, one of the largest housebuilders in Northern Ireland, with a longstanding reputation for delivering quality homes, has plans to develop its markets in Ireland and in Great Britain, where it has established a strong regional presence. For the year ended 31 December 2017, the overall Lagan Homes business, which sits outside Lagan Group, posted total turnover of around £76 million, with combined profit before tax coming in at approximately £10 million.
Kevin Lagan is also the majority shareholder in LF FastHouse, an innovative manufacturer of modular closed panel and timber frame systems for the construction industry, which employs around 100 people at its state of the art factory. FastHouse aims to deliver fast, efficient, cost-effective housing solutions manufactured off-site, supporting demand in Ireland, the UK and internationally. It is currently supplying around 470 luxury holiday lodges to Ireland’s first-ever CenterParcs resort in County Longford.