Breedon set to build US presence with £238m acquisition
Breedon, the Leicestershire construction materials group, has announced a major acquisition in snapping up a US supplier of ready-mixed concrete, aggregates and building products in a deal worth £238.1m.
BMC is headquartered in St Louis. In the 12 months to the end of October 2023, it produced revenues of US$178.9m and unaudited adjusted EBITDA of US$35.5m.
The deal is set to complete by tomorrow (March 7).
Rob Wood, chief executive officer, said: “The acquisition of BMC represents a compelling opportunity for Breedon to launch our third platform in the USA. BMC has an excellent performance track record over a sustained period and is positioned in an attractive market for future growth.
“As a high-quality aggregates and concrete business that has grown at pace, organically and through acquisitions, with a strong management team and deep local knowledge, BMC’s culture and values are fully aligned with the Breedon business model.
“The acquisition is expected to be earnings enhancing for shareholders while allowing Breedon to maintain a conservative and flexible balance sheet to pay dividends and make further bolt-on acquisitions across each of our platforms as opportunities arise.
“We are delighted to welcome our BMC colleagues to Breedon and look forward to working with them to build Breedon’s presence in the USA.”
Meanwhile, Breedon also revealed its fully year results for 2023 this morning.
Revenue at the company rose by 7% to almost £1.49bn – a record, while profit before tax dipped slightly to £134.4m.
Wood added: “The record results we delivered in 2023 are a real accomplishment and something I am extremely proud of.
“The challenging trading conditions our team faced required agile and bold responses which they took with discipline and determination. As a result we kept our workforce safe and well, reinforced our market positions and were recognised by our clients for the quality of our products and services. For this I sincerely thank the whole team.”
