Ennstone Thistle and Ennstone Johnston bought by Marwyn Materials
17 August 2010
Breedon Holdings Limited, the owner of the building materials companies Ennstone Thistle and Ennstone Johnston, has been acquired by Marwyn Materials Ltd and renamed Breedon Aggregates Limited. Marwyn Materials Ltd are an AIM listed company formed to make acquisitions in the building materials sector, subject to approval of Marwyn Materials’ shareholders.
The board of Breedon Holdings will continue to run the group until the transaction completes and the interim period will work closely with Marwyn Materials.
Ennstone Poland, is not included in the Marwyn Materials transaction at this time. Following a successful share placing, Marwyn Materials will inject £54m into Breedon Holdings to reduce debt and to develop the business.
Julian Cooper, Breedon Holdings Chairman says: “Since the Ennstone businesses were acquired by Breedon Holdings in March 2009 they have reacted well to poor market conditions, which is a cred to the efforts of everyone involved and to the support of the banks who will continue to provide finance to the group.
“The change in ownership presents a great opportunity for the English and Scottish Ennstone businesses to prosper as the new group will benefit from a stronger capital structure and be better positioned to take advantage of future improvements in the UK economy.”
When the acquisition is completed at the end of this month, the intention is to rename the group Breedon Aggregates Limited, trading as Breedon Thistle in Scotland and Breedon Aggregates in the Midlands. This will revive a prestigious name long associated with the British aggregates industry, with its roots in Breedon Hill and Cloud Hill quarries in the East Midlands and a legacy of aggre extraction dating back to the 19th century.
Simon Vivian, Marwyn Materials Chief Executive, said: “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. We intend to build on that achievement by taking full advantage of the economic recovery and helping to improve the company’s operational and financial performance in the coming years.
“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. plan to continue investing in the group and strengthening it with further carefully chosen acquisitions. Breedon Aggregates will be a powerful springboard for our ambitious growth plans.”