Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

McAlpine weighs share buyback

Francesco Guerrera
Wednesday 07 October 1998 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

ALFRED MCALPINE, the construction group, is considering a share buyback and bolt-on acquisitions following yesterday's sale of two US businesses to rival Hanson for $122.5m (pounds 73m).

Oliver Whitehead, the chief executive of McAlpine, said that, following the disposal of material producer Becker Minerals and civil engineering contractor Blythe Construction, "share buybacks are on the agenda".

He added that the sales complete McAlpine's exit from non-core US activities and would enable the group to strengthen its core UK construction and housebuilding divisions through small acquisitions.

The two businesses, put up for sale more than two years ago, had a turnover of pounds 98.8m and operating profits of pounds 2.9m.

Under the terms of the deal, Hanson, the UK's second largest building materials producer, will pay McAlpine $97.5m in cash for Becker and Blythe and take on $20m debt and $5m for a separate competition agreement.

The company, the last remnant of Lord Hanson's 1980s conglomerate, will then retain Becker and sell off Blythe to the French giant Suez Lyonnaise des Eaux for $40m, leaving it with a net payment of $82.5m. The purchase of Becker, a supplier of sand and gravel for road building, will strengthen Hanson's position as the third-largest aggregates producer in the US.

Shares in McAlpine soared 13 per cent to 133.5p, while Hanson was up 2p to 375p.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in