DERBY: Breedon Aggregates, one of the UK's largest independent aggregates business, has announced a placing of 83 333 335 ordinary shares with new and existing institutional investors and directors to raise £15m. The aim is to release cash resources to make acquisitions and reduce debt.
Breedon Aggregates' stated strategy is to grow through consolidation of the heavyside building materials sector. Since the reverse takeover of Breedon Holdings in 2010, the company made two bolt-on acquisitions – C&G Concrete and Nottingham Readymix – for a total consideration of £11.7m.
Breedon is seeking opportunities to acquire similar businesses and the funds raised from the placing will provide additional cash resources for this purpose. The company is currently in discussion with a number of potential vendors.
