Marwyn Materials has engineered a reverse-takeover of Breedon Holdings, the former Ennstone building materials business which went into administration in March 2009.
Marwyn, which will change its name to Breedon Aggregates, is buying Breedon from a Barclays-led syndicate of banks for £2.25 million as well as warrants for 10% of the shares in the newly enlarged business and has raised £50m to fund this and future acquisitions.
Marwyn chairman Peter Tom formerly chief executive and chairman of Aggregate Industries, the UK’s largest aggregates producer until its acquisition by Swiss construction group Holcim in 2005 will become executive chairman of the new group. Simon Vivian, ex-head of Hanson’s building materials arm, will become chief executive.
Breedon had revenues of more than £130m last year and debts of more than £100m. Breedon Aggregates, will have 29 quarries, 19 asphalt plants and 27 concrete plants in England and Scotland and will be the largest UK’s domestic building materials group.
Tom described the deal as an “excellent launchpad”.
“Breedon represents an excellent opportunity for us to acquire a profitable and well-invested building materials company at or near the bottom of the cycle,” he said.