Adbri has further expanded its quarrying footprint with the acquisition of Zanow’s Concrete & Quarries business in Queensland.
The $58 million agreement includes the handover of two concrete plants, plus approval to construct a third, a sand and gravel quarry, and a hard rock quarry in the west of Brisbane.
Adbri managing director and chief executive officer Nick Miller said Zanows was a great fit for his business.
“This highly accretive acquisition provides Adbri with an integrated business that complements our existing network of concrete assets in the greater Brisbane area,” Miller said.
Adbri has more than 100 locations around Australia – 95 concrete plants, 44 quarries, 16 cement and lime facilities and 10 concrete product facilities – with 29 of these being in Queensland.
Miller said the acquisition provided more assurance to the business as it manages a volatile construction market.
“This acquisition provides access to quarries with approved reserves of over 70 million tonnes, that will provide a source of long-term, high quality raw materials to supply our vertically integrated concrete network and external customers,” Miller said.
Zanows is a family-owned business which has been operating in the Brisbane Valley and the Ipswich regions since 1957, supplying construction materials to the wider South East Queensland region. It commenced extraction of sand and gravel at its Fernvale operations in 1997. Since 2013, Zanow’s Kalbar Quarry has provided hard rock quarry products, including aggregates, roadbases and precoat materials, to the Ipswich, Scenic Rim and Brisbane Valley regions.
Zanow’s Concrete & Quarries has supplied products for numerous local projects, including the RAAF Base Amberley, the Sandy Gully Bridge in Pine Mountain, and the West Moreton Anglican College.
The Zanows move followed a similar deal in early October where Adbri acquired part of Metro Quarry Group in the southeast of Melbourne.
In an equal joint venture with Barro Group, Adbri paid $30 million for its share of two sand operations.
Miller said this was an ideal agreement for the company as it looked to expand as reliably as possible.
“This acquisition is consistent with our strategy to extend our vertically integrated footprint and provides a compelling opportunity for Adbri to lock in a long-term secure supply of natural sand for our downstream businesses servicing the competitive Melbourne market,” Miller said.
To take advantage of the acquisition and the strong market conditions, Miller said he saw Barro – already a major shareholder in Adbri – as an integral part of the future of the operations.
“The value of this purchase will be optimised through a joint ownership structure, where the operational expertise of Adbri and the Barro group will unlock cost efficiencies and maximise product offtake,” Miller said.