Readymix confirmed yesterday it is to buy Finlay, the Co Tyrone concrete firm, in a deal worth £16 million sterling (€24 million).

Readymix said the acquisition would extend the spread of its business within Ireland, improving its stone reserves.

The company also released its financial results for the first six months of the year, recording a 8.5 per cent rise in turnover to £66 million (€84 million), with pre-tax profits climbing 15.7 per cent to £8.1 million (€10.3 million).

Readymix said it would acquire Finlay for £10 million sterling, which would be funded from borrowing.

"In addition to the consideration, the vendors will receive a pre-sale dividend of £6 million sterling from Finlay," the Dublin company said.

Finlay, based in Ballygawley, Co Tyrone, has a staff of 325.

It manufactures ready-mixed concrete, concrete blocks, paving blocks, pipes for land drainage, pre-cast flags and other products.

In addition to the 100-acre main site and production facility, the company also conducts business from nine other locations in Northern Ireland. It also owns a pre-stressed concrete manufacturing operation in Somerset, England.

In 1996, Readymix bought some of the business of RMC Catherwood, and has since been looking for an opportunity to expand in the North.

The company said considering its results, and its expectations for the rest of the year, it would pay shareholders an interim dividend of 0.96p a share.