Breedon Aggregates to raise £15 million

UK’s largest independent aggregates firm announces proposed share placing to fund future acquisitions

BREEDON Aggregates Ltd have announced a conditional placing of 83,333,335 ordinary shares, in a bid to raise approximately £15 million to fund further acquisitions and, if appropriate, reduce the indebtedness of the company and its subsidiaries.

The company’s stated strategy is to grow via consolidation of the heavyside building materials sector, and since the reverse takeover of Breedon Holdings Ltd in 2010, it has made two bolt-on acquisitions – C&G Concrete and Nottingham Readymix – for a total consideration of £11.7 million.

Breedon Aggregates say they are continuing to seek opportunities to acquire similar businesses and are currently in discussion with a number of potential vendors.

The company is believed to be keeping a particularly close eye on any potential opportunities arising from the ongoing OFT investigation into the aggregates, cement and ready-mixed concrete markets in Great Britain, as well as from the proposed merger of Tarmac and Lafarge’s UK operations.

The share placing is conditional upon the passing of certain resolutions at the company’s AGM on Friday 20 April.

Marwyn Value Investors LP, who hold 146,223,698 ordinary shares representing 26.1% of the existing issued share capital, have already signed an irrevocable undertaking to vote in favour of the resolutions.

The placing shares, once issued, will represent approximately 12.9% of the company’s issued ordinary share capital.

Application will be made to the London Stock Exchange for the placing shares to be admitted to trading on AIM. It is expected that admission will become effective and dealings will commence on Monday 23 April 2012.