Michelmersh Brick Holdings has agreed to acquire rival manufacturer Freshfield Lane Brickworks for up to £10 million.

Michelmersh Brick Holdings has agreed to acquire rival manufacturer Freshfield Lane Brickworks for up to £10 million.

Sussex-based Freshfield is the last remaining producer of traditional clamp-fired bricks in the South of England, and manufactures up to 30 million a year. AIM-listed Michelmersh is raising £3 million at 30p a share to fund the deal.

Eric Gadsden, chairman of Hertfordshire-based Michelmersh, says that the deal will enable the group to expand its operations in South East England.

In the six months ending June 2009, Michelmersh reported a fall in revenue of 28 per cent to £9.1 million, while pre-tax losses reduced by 5 per cent to £457,000.