Marwyn Materials has acquired the acquisition of Breedon Holdings for £2.25million and warrants to subscribe for 55,266,667 Ordinary Shares at an exercise price of £0.12 per share. The company has also raised £50million with the issue of 416,666,667 shares at £0.12. Marwyn has said that the proceeds of around £44.25million will be used pay down Breedon’s debt and provide £25mmillion as ongoing working capital. As part of the takeover, Marwyn will also rename the business as Breedon Aggregates.
Marwyn Materials has acquired the acquisition of Breedon Holdings for £2.25million and warrants to subscribe for 55,266,667 Ordinary Shares at an exercise price of £0.12 per share. The company has also raised £50million with the issue of 416,666,667 shares at £0.12.
Marwyn has said that the proceeds of around £44.25million will be used pay down Breedon’s debt and provide £25mmillion as ongoing working capital. As part of the takeover, Marwyn will also rename the business as Breedon Aggregates.
Breedon is currently the largest independent quarry operator in the Uk with 29 quarries, 27 ready mixed concrete plants and 19 asphalt plants. The company has 181million tonnes of reserves.
Marwyn chairman Peter Tom said, “Breedon represents a unique opportunity for us to acquire a profitable and well-invested building materials company at or near the bottom of the cycle. We are confident that we can appreciably improve the financial and operational performance of the business over the next few years, drawing on the experience and commitment of a board and senior management team with outstanding experience in our industry.
“Opportunities to secure such a substantial position in the UK building materials market come along very rarely. As the UK’s largest independent building materials business, Breedon provides us with an excellent launchpad from which to make further acquisitions and consolidate the smaller end of the UK market, and we already have several acquisitions in our sights or under negotiation.
