Marwyn snapping up aggregates producer Breedon

AIM-listed Marwyn, which will be renamed Breedon Aggregates following the reverse takeover, also raised £50 million through a share placing to pay down Breedon's debts and cover running costs.

Tom, former chief executive of Aggregate Industries, will take over as executive chairman and Vivian, ex-head of Hanson's building materials arm, will become chief executive.

They set up Marwyn two years ago to invest in aggregates firms in the UK and abroad and looked at Breedon, then called Ennstone, before it crashed into administration early last year.

The impact of the recession, high levels of debt, and worries about the size of the deficit in the pension scheme scuppered a deal at that stage.

Ennstone fell into the hands of its banks, led by Barclays, as business declined and its US arm haemorrhaged cash.

Marwyn is paying the banks £2.25 million as well as warrants for 10% of the shares in the newly enlarged business. Breedon had revenues of more than £130 million last year and debts exceeding £100 million.

It has 29 quarries, 19 asphalt plants and 27 concrete plants in England and Scotland and employs 700 staff.

Speaking today, 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."