Marwyn Materials, an AIM-listed special purpose acquisition vehicle, has acquired Breedon Holdings (formerly Ennstone), the largest independent UK aggregates producer with 29 quarries, 19 asphalt plants, 27 ready mix concrete plants and 181 million tonnes of mineral reserves.
The GBP160m reverse takeover, Marwyn’s biggest transaction to date, will result in the company being renamed Breedon Aggregates.
Chairman Peter Tom was formerly chief executive and later chairman of Aggregate Industries. Simon Vivian, chief executive, was formerly chief executive of Mowlem and of Hanson’s European building materials business.
The new management believes the acquisition represents an ideal platform for acquisitive growth through the consolidation of the UK and European heavyside building materials sector, and that the business will be an early beneficiary of an economic upturn. Several bolt-on acquisitions have already been identified.
Gross proceeds of GBP50m from a placing by Marwyn Materials will be used to pay down some of Breedon’s existing debt and provide approximately GBP25m of funds for working capital, capital expenditure and acquisitions.
A GBP94.5m bank facility will be provided by Breedon’s existing lenders (who owned 67 per cent of the group) for five years from completion of the transaction.
