Marwyn Materials acquire Breedon Holdings
BREEDON Holdings Ltd, owners of Ennstone Johnston and Ennstone Thistle, have been acquired by Marwyn Materials Ltd, the AIM-listed company formed two years ago by quarry industry veterans Peter Tom and Simon Vivian to make acquisitions in the building materials sector. The deal is subject to the approval of Marwyn Materials’ shareholders.
Under the terms of the ‘reverse takeover’, Breedon’s shareholders will receive £2.25 million in cash together with warrants for a 10% stake in the enlarged company. Following a successful share placing, Marwyn Materials plan to inject £54 million into Breedon to reduce debt and to develop the business.
In addition, a bank facility of around £94 million is to be provided by Breedon’s existing lenders, who owned 67% of the group prior to the Marwyn deal.
On completion of the acquisition at the end of this month, the intention is to rename the group Breedon Aggregates Ltd, trading as Breedon Aggregates in the Midlands and Breedon Thistle in Scotland. The new group will continue to be based at Breedon-on-the-Hill.
Ennstone Poland is not included in the deal and is to be sold off.
Peter Tom (pictured), chairman of Marwyn Materials and former chief executive of Aggregate Industries, is to take over as executive chairman of Breedon Aggregates Ltd, and Simon Vivian, chief executive of Marwyn Materials and former head of Hanson’s building materials business, will become the group’s chief executive.
Mr Tom described the deal as a unique opportunity to acquire a profitable and well-invested building materials company at or near the bottom of the economic cycle. ‘We are confident that we can appreciably improve the financial and operational performance of the business over the next few years,’ he said.
Simon Vivian added: ‘It is a tribute to every one of Ennstone’s employees that the group has remained profitable in the teeth of the worst recession in living memory. Ennstone is already Britain’s largest independent aggregates business with a very strong presence in Scotland and the Midlands, and we believe it has the potential to become very much larger.
‘We plan to continue investing in the group, strengthening it with further carefully chosen acquisitions. Breedon Aggregates will be a powerful springboard for our ambitious growth plans.’
Under the terms of the ‘reverse takeover’, Breedon’s shareholders will receive £2.25 million in cash together with warrants for a 10% stake in the enlarged company. Following a successful share placing, Marwyn Materials plan to inject £54 million into Breedon to reduce debt and to develop the business.
In addition, a bank facility of around £94 million is to be provided by Breedon’s existing lenders, who owned 67% of the group prior to the Marwyn deal.
On completion of the acquisition at the end of this month, the intention is to rename the group Breedon Aggregates Ltd, trading as Breedon Aggregates in the Midlands and Breedon Thistle in Scotland. The new group will continue to be based at Breedon-on-the-Hill.
Ennstone Poland is not included in the deal and is to be sold off.
Peter Tom (pictured), chairman of Marwyn Materials and former chief executive of Aggregate Industries, is to take over as executive chairman of Breedon Aggregates Ltd, and Simon Vivian, chief executive of Marwyn Materials and former head of Hanson’s building materials business, will become the group’s chief executive.
Mr Tom described the deal as a unique opportunity to acquire a profitable and well-invested building materials company at or near the bottom of the economic cycle. ‘We are confident that we can appreciably improve the financial and operational performance of the business over the next few years,’ he said.
Simon Vivian added: ‘It is a tribute to every one of Ennstone’s employees that the group has remained profitable in the teeth of the worst recession in living memory. Ennstone is already Britain’s largest independent aggregates business with a very strong presence in Scotland and the Midlands, and we believe it has the potential to become very much larger.
‘We plan to continue investing in the group, strengthening it with further carefully chosen acquisitions. Breedon Aggregates will be a powerful springboard for our ambitious growth plans.’
