Tarmac Group


Tarmac Group Limited was a British building materials company headquartered in Wolverhampton, United Kingdom. It produced road surfacing and heavy building materials including aggregates, concrete, cement and lime, as well as operating as a road construction and maintenance subcontractor.

Tarmac Group Limited
Founded1903; 119 years ago (1903)
As the Tar Macadam Syndicate Ltd
FounderEdgar Purnell Hooley
FateAcquired by Anglo American plc
SuccessorTarmac Holdings
HeadquartersWolverhampton, United Kingdom
Revenue£1,081 million (2011)
Number of employees
Approx 4,500
ParentAnglo American

The company was founded in 1903 by Edgar Purnell Hooley after he patented the road surfacing material tarmac in 1901. The company was formerly listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index. In July 1999, Tarmac demerged its construction and professional services businesses under the name Carillion; the Tarmac building materials business was acquired by Anglo American later that year.

In 2010, the group was separated into Tarmac Limited and Tarmac Building Products.[1] Anglo American merged Tarmac Limited with the United Kingdom assets of Lafarge in 2013 to form a 50:50 joint venture, Lafarge Tarmac (now Tarmac Holdings). Tarmac Building Products was subsequently sold to Lafarge Tarmac in 2014.[2]


Growth of a roadstone businessEdit

Tarmac logo in use from 1964 to 1996
A Sentinel steam lorry in Tarmac livery (Sentinels were used extensively in the 1920s)[3]
Original Tarmac Head office and depot in Ettingshall
Hilton Hall: Tarmac Head Office from 1986 to 1999

The company was originally formed by Edgar Purnell Hooley as the Tar Macadam (Purnell Hooley's Patent) Syndicate Limited in 1903.[4] The distinguishing feature of the new process was that it "tarred" cheap blast furnace slag, a steelworks by-product, rather than expensive roadstone and the company entered into long term contracts with steelworks to ensure its supply.[5]

The business was secured in 1905 by Sir Alfred Hickman, who became its first chairman.[4] The company remained under the effective control of members of the Hickman and Martin family until 1979. There were Hickmans as chairmen until 1959; more significantly, Cecil Martin, the son in law of Victor Hickman, was appointed a director in 1923 and managing director two years later.[6] Cecil's son Robin followed him in turn, serving first as managing director and then chairman and chief executive from 1971 to 1979.[7]

Tarmac was first listed on the Birmingham Stock Exchange in 1913 and then the London Stock Exchange in 1922.[8] During the 1920s and ‘30s Tarmac had to cope with national strikes, recession and periods of intense competition. Nevertheless, the company gradually expanded its geographic coverage (particularly in the south east), increased its production of paving slabs and moved into road surfacing as well as supply.[9]

As with so many companies in the construction industry, the Second World War increased the demand for Tarmac’s services, notably for surfacing the large numbers of airfields being built or modernised. By the time of its half centenary in 1953, Tarmac was processing over two million tons of slag a year, its road surfacing had developed into a significant civil engineering business, and its Vinculum subsidiary "had become one of the major precast concrete undertakings in the country."[10]

Under Robin Martin's leadership, Tarmac moved from being an important regional force to a national roadstone and contracting business. Acquisitions played a major role in Tarmac's growth. While leading the roadstone division, Martin had been responsible in 1959 for the acquisition of local competitor Tarslag and Crow Catchpole, which gave it a greater presence in the south east.[11] In 1964, now group managing director, Martin acquired key quarrying assets, including Cliffe Hill Granite, Rowley Regis Granite and Hillhead Hughes.[12]

In 1968, Martin engineered the three way merger between Tarmac, Derbyshire Stone and the Scottish Asphalt company, William Briggs, creating the country's "largest roadstone and construction group".[13] The group was briefly known as Tarmac Derby but the Derby name was later dropped.[14]

Tarmac becomes a housebuilder and contractorEdit

Further acquisitions were to come. Permanite, Britain's biggest roofing felt manufacturer, and Limmer, a quoted asphalt company, were bought in 1971,[15] while the 1973 purchase of Mitchell Construction (which had foundered on the Kariba Dam) strengthened the construction division.[16] However, the acquisition which was to radically change the direction of Tarmac was McLean Homes bought at the beginning of 1974.[17]

McLean was run by Eric Pountain,[18] a one time estate agent who had sold his own housebuilding business to McLean, later taking over as managing director in a boardroom coup. McLean had been bought to strengthen Tarmac's own poorly performing housebuilding division and the enlarged operation, now run by Pountain, was producing around 2,000 houses a year.[19]

Pountain had ambitions to become a national housebuilder, and by the end of the 1970s, McLean was building 4,000 houses a year and a substantial contributor to group profits. However, there were problems elsewhere in the group. In 1976, Tarmac had bought the old established contracting firm of Holland, Hannen & Cubitts; this was followed by contract provisions of £16m in its Nigerian subsidiary.[20]

The head of the contracting division was dismissed and the finance director resigned. The boardroom pressure on Martin increased, and in 1979, he was forced out to be replaced by Eric Pountain as the new group managing director. Whereas Martin had created a national roadstone group, Pountain was to create the country's largest housebuilder.[19]

By the end of the 1980s, British housebuilding was accounting for half of group profits but it was not the only activity to have been expanded.[19] An alternative profits centre had been built up in the United States, starting in 1984, with the staged acquisition of Lone Star Industries; by the end of the decade Tarmac was operating across seven states in the United States. Construction in the United Kingdom had also grown and Tarmac was involved in such prestige projects as the Thames Barrier and the Channel Tunnel.[21]

1990 to 1999: expansion then return to heavy building materials rootsEdit

However, the expansionary nature of the group did not leave it well placed to face the recession of the early 1990s. In particular, the housing division continued to invest heavily in land even though the market had peaked, leading to provisions of £132m in that division alone. Like his predecessor before him, Pountain was forced to step down as chief executive to be replaced by Neville Simms, previously in charge of construction. Inevitably, the emphasis moved away from housing in favour of construction.[19]

In October 1992, Tarmac acquired the privatised government agency PSA Projects to complement Tarmac Construction.[22] This was initially called TBV Consult (reflecting a short lived partnership between Tarmac and Black & Veatch) and was renamed TPS in 1998.[23] Tarmac Professional Services also included a scientific and materials testing consultancy (Stanger), a facilities management company, specialist architects firms, and IT businesses.[24]

Housebuilding was progressively reduced in size until 1995, when Tarmac announced that the division would be sold. Later that year, Tarmac and Wimpey announced an asset swap whereby Wimpey acquired all of Tarmac's housing, and in return, Tarmac received Wimpey's construction and minerals divisions.[25] The downsizing continued, and in July 1999, Tarmac demerged its construction and professional services businesses under the name Carillion.[26]

2000 to 2014Edit

Months later, Tarmac, now back to its roots as a roadstone and road surfacing business, accepted a bid from Anglo American Mining.[19][27] In August 2007, Anglo American announced it was to sell the business[28] but in February 2008, it went on to report that it was putting the sale on hold.[29] In June 2008, Tarmac Iberia was sold to Holcim.[30]

In February 2010, Anglo American sold Tarmac's European concrete aggregates business to Eurovia; it also sold its Polish concrete products business to the private equity firm Innova Capital.[31] A few months later, the French concrete products business was sold to the private equity firm Foundations Capital.[32] In February 2011, Anglo-American announced a proposed joint venture with Lafarge that involved combining both companies' aggregates businesses in the United Kingdom. The merger, which excluded Tarmac Building Products, was completed in March 2013, following receipt of necessary approvals from the UK Competition Commission, forming Lafarge Tarmac.[33] Tarmac Building Products, the last part of the business still wholly owned by Anglo-American, was acquired by Lafarge Tarmac in April 2014.[34]


Tarmac Group consisted of Tarmac Building Products, Tarmac Middle East and 50% of Lafarge Tarmac.

Tarmac Building ProductsEdit

Tarmac Building Products was the largest supplier in the United Kingdom of heavy building products. It supplied aircrete blocks, aggregate blocks, bagged aggregates, mortar, screeds, sports surfaces, TermoDeck, foundry sands, grouts, plasters, renders, bagged cement and bagged lime. It also offers bespoke production and contract manufacturing.

Tarmac Middle EastEdit

Tarmac Middle East was one of the largest and leading suppliers of aggregates and asphalt to the Middle East construction industry. It had interests in Primary Aggregate & Road Base Materials, Armour stone, Wet mix and Asphalt Products and Asphalt & Road Base contracting services.

Lafarge TarmacEdit

Lafarge Tarmac was a 50:50 joint venture between Lafarge and Anglo American. It was the leading construction materials company in the United Kingdom, comprising cement, aggregates, ready mixed concrete, asphalt and contracting businesses in the United Kingdom.

Major projects by Tarmac ConstructionEdit

Projects undertaken by or involving Tarmac Construction prior to demerger of that business in 1999 included the Preston Bypass completed in 1958,[35] the St Albans Bypass completed in 1960,[36] the Ahmed Hamdi Tunnel in Egypt completed in 1981,[37] the Thames Barrier,[38] the Joint European Torus[39] and Drax Power Station[39] all completed in 1984, the Merry Hill Shopping Centre completed in 1985,[40] the Albert Dock refurbishment completed in 1988,[41] the Conwy Road Tunnel completed in 1991,[42] the Channel Tunnel completed in 1994,[43] the Medway Road Tunnel completed in 1996,[44] the Swindon Designer Outlet in Swindon completed in 1997, [45] Canary Wharf tube station completed in 1999[46] and the Jack Lynch Tunnel in Ireland also completed in 1999.[47]


  1. ^ "Our history". Tarmac Building Products. Retrieved 30 January 2015.
  2. ^ "Completed acquisition by Lafarge Tarmac Holdings Limited of Tarmac Building Products Limited" (PDF). Competition & Markets Authority. Retrieved 30 January 2015.
  3. ^ Ritchie, p.43
  4. ^ a b Hooley, Edgar Purnell (1860–1942)’, by John Sheail Oxford Dictionary of National Biography, first published September 2004
  5. ^ Ritchie, p.12
  6. ^ Ritchie, p.40
  7. ^ Ritchie, p.93
  8. ^ Ritchie, p.38
  9. ^ Ritchie, p.63
  10. ^ Ritchie, p.60
  11. ^ Ritchie, p.68
  12. ^ Ritchie, p.74
  13. ^ Ritchie, p. 77
  14. ^ Ritchie, p. 80
  15. ^ Ritchie, p. 82
  16. ^ Ritchie, p. 84
  17. ^ Ritchie, p. 88
  18. ^ Obituary: Sir Eric Pountain Daily Telegraph, 27 October 2003
  19. ^ a b c d e Wellings, Fred: Dictionary of British Housebuilders (2006) Troubador. ISBN 978-0-9552965-0-5,
  20. ^ Ritchie, p. 92
  21. ^ Ritchie, p.105
  22. ^ "Tarmac buys PSA Projects". Independent. 1 October 1992. Archived from the original on 26 May 2022. Retrieved 16 January 2018.
  23. ^ "History". TPS Consult. Retrieved 16 January 2018.
  24. ^ "£40m price put on Cox sale Merger of Tarmac and Bovis outfits announced Brace of deals sends hire sector into flux". Construction News. 26 February 1998. Retrieved 17 January 2018.
  25. ^ Ritchie, p.127
  26. ^ "Tarmac to split in two". BBC News. 16 March 1999. Retrieved 13 July 2008.
  27. ^ "Tarmac falls to pounds 1.2bn Anglo American bid". www.independent.co.uk. 6 November 1999. Archived from the original on 26 May 2022. Retrieved 17 January 2018.
  28. ^ "Tarmac up for Sale". Building. 3 August 2007.
  29. ^ "Anglo American puts Tarmac sale on shelf" Guardian, February 2008
  30. ^ "Anglo sells Tarmac unit to Holcim for $230m". Engineering News. 13 June 2008.
  31. ^ White, Garry (16 February 2010). "Anglo sells Tarmac's Continental businesses". The Telegraph.
  32. ^ "Fondations Capital acquires Tarmac's French and Belgian building materials operations". AltAssets. 5 May 2010.
  33. ^ "Lafarge Tarmac starts trading after deal approved". Global Cement. 7 January 2013. Retrieved 25 March 2013.
  34. ^ "Completed acquisition by Lafarge Tarmac Holdings Limited of Tarmac Building Products Limited" (PDF). Competition & Markets Authority. Retrieved 30 January 2015.
  35. ^ Preston Bypass Opening Booklet Archived 29 February 2008 at the Wayback Machine
  36. ^ "The Motorway Archive M1 London - Yorkshire Motorway, M10 and M45". iht.org. Archived from the original on 26 January 2008. Retrieved 15 March 2015.
  37. ^ "From the Suez Canal to the A9". Highway Engineer. November 1981. Retrieved 4 June 2012.
  38. ^ Environment Agency Archived 17 September 2008 at the Wayback Machine
  39. ^ a b Ritchie, p. 100
  40. ^ Ritchie, p.108
  41. ^ Ritchie, Page 99
  42. ^ "The Motorway Archive. The North Wales Coast Road. A55". iht.org. Archived from the original on 31 December 2008. Retrieved 15 March 2015.
  43. ^ EuroTunnel at Structurae
  44. ^ Rochester Bridge Trust Archived 16 November 2007 at the Wayback Machine
  45. ^ "Swindon Designer Outlet" (Press release). 6 December 2010. Archived from the original on 4 March 2016.
  46. ^ Schmidlin website Archived 6 February 2007 at the Wayback Machine
  47. ^ "Immersed Tunnel Techniques 2". google.com. Retrieved 15 March 2015.


  • Ritchie, Berry (1999). The Story of Tarmac. James & James (Publishers) Ltd.
  • Wellings, Fred: Dictionary of British Housebuilders (2006) Troubador. ISBN 978-0-9552965-0-5

External linksEdit

  • Official website
  • Tarmac Building Products
  • Tarmac Middle East