Breedon : Acquisition of assets from Tarmac Holdings Limited

NEWS RELEASE

13 December 2017

BREEDON GROUP PLC("Breedon" or "the Group")

Acquisition of assets from Tarmac HoldingsLimited ("Tarmac")

Breedon, the UK's largestindependent construction materials group, has agreed to acquire from Tarmac-a CRH company-four quarries and an asphalt plant for a total consideration of £16.5million, to be satisfied by the transfer to Tarmac of 27 of Breedon's ready-mixed concrete plants and a payment of £4.9 million in cash.

The deal is conditional on approval by the Competition & Markets Authority (CMA).

The operations to be acquired by Breedon comprise quarries in Scotland, Cumbria and North Wales, together with a quarry and asphalt plant in West Wales. The ready-mixed concrete plants to be divested by Breedon are in multiple locations extending from Dumfries in Scotland to Exeter in Devon.

The deal is in line with Breedon's strategy of expanding its aggregatesportfolio, in this case adding approximately25 million tonnes to the Group's mineral reserves and resources, and furthering the development of its asphalt capacity. It also streamlinesBreedon'sreadymix network. The transaction is not expected to have a materialimpact on the Group's earnings.

Pat Ward, Breedon's Group Chief Executive, commented: "This dealbrings significant benefits: it adds to our reserve base; it is margin-enhancing; it releases value from peripheral readymix plants; and it will enable us to replace third-party aggregates providers with our own sources of supply.

"It is also a great example of how we can work with our larger peers -in this case CRH, one ofthe world's most successful global building materials companies -to benefit customers and other stakeholders on both sides."

The transaction is expected to close in the first half of 2018, subject to approval by the CMA.

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The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

Notes to editors

Breedon Group plc is the UK's largest independent construction materials group.Following this transaction, it will operatethe country's largest cement plant, two cementitious import terminals,more than 60 quarries, 27 asphalt plants, around 170 ready-mixed concrete plants and three concrete products plants nationwide. The Group employs around 2,300 people and has more than 750 million tonnes of mineral reserves and resources. Its strategy is to continue growing organically and through acquisition of businesses in the UK heavyside construction materials market.

Tarmac assets to be acquired in this transaction:

Daviot Quarry, Inverness

Low Plains Quarry, Penrith

Borras Quarry, Wrexham

Minffordd Quarry & Asphalt Plant, near Porthmadog

Breedon ready-mixed concrete plants to be divested in this transaction:

Alrewas Banbury Boroughbridge Bournemouth Bridgend Briton Ferry Cardiff Cardigan Carmarthan Colchester Dumfries Dunald Mill Exeter HalecombeLlandybie Llanelli Llynclys Meriden Pembroke Portsmouth Scorton Shawell Southampton Stancombe Tongwynlais Tredegar Wellington

For further information:

Breedon Group plc

Pat Ward, Group Chief Executive Rob Wood, Group Finance Director 01332 694444

Stephen Jacobs, Head of Communications 07831 764592

Cenkos Securities plcMax Hartley (Nomad) 020 7397 8925

Numis Securities(joint broker) Heraclis Economides/Ben Stoop 020 7260 1000