£336m deal to take over concrete firm with bases in Shropshire and Mid Wales

The move will create the UK's biggest building materials group, and brings Hope Materials' portfolio of one cement works, five quarries and 152 concrete plants across the UK into Breedon's group.

In the year to June 30, Hope sold 1.6 million tonnes of cement, 4.7 million tonnes of aggregates and 2.3 million cubic metres of concrete, generating revenue of £285.6 million and underlying pre-tax earnings of £37 million.

It has operations in Llynclys, near Oswestry, Presteigne on the Welsh border, beside Bayston Hill Quarry on the edge of Shrewsbury, Trench and Halesfield in Telford, at Four Ashes near Wolverhampton, and at Wooferton near Ludlow.

In total, the company employs around 20 full-time staff across Shropshire, and works with local haulage companies.

"This acquisition is well-timed, with UK construction output forecast to expand by around 15 per cent over the next four years and volumes of all our major products expected to grow strongly," said Peter Tom, executive chairman of Breedon, which itself has operations across the area, including at Leaton Quarry, between Wellington and Shrewsbury.

"We are confident that we will be able to continue delivering significant value for our shareholders in the coming years, with an even stronger platform for growth."

Amit Bhatia, chairman of London-headquartered Hope, added: "The growth of Hope is testament to the incredible amount of hard work put in by everyone in the business over the past three years. The combination with Breedon builds on that by creating a new, independent force in the construction materials sector with superior growth prospects and greater opportunities thanks to its broader product mix, strong customer offer and extended geographic footprint.

Both companies are entrepreneurial and energetic and this transaction will combine the best of both teams and cultures."