Breedon set to roar in the US after £187m Lionmark acquisition

Leicestershire-based aggregates giant Breedon has made a £187m swoop for Lionmark Construction Companies, the Missuouri, US-based construction materials and surfacing business.

The deal is expected to more than double Breedon’s US revenue.

In the twelve months to 30 November 2024, Lionmark recorded unaudited revenue of US$246m and unaudited adjusted EBITDA of US$31m.

Breedon says the deal will save it $US3m a year after the third year of ownership.

Completion of the deal is expected by March 7.

Andy Arnold, Managing Director, Breedon US, said: “The acquisition of Lionmark represents a significant milestone in the development of our US business. Lionmark is extremely complementary to our existing operations, diversifying BMC’s product to supply asphalt and surfacing solutions into an attractive market which is well-positioned for future growth.”

Rob Wood, chief executive officer, added: “The acquisition of Lionmark will more than double our US revenue, is expected to be immediately 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.

“In a year we have built a US business of scale that is already on a pro-forma basis the equivalent size of our Irish business. We are delighted to welcome our new colleagues to Breedon and look forward to working with them as we continue to expand Breedon’s presence in the United States.”

Meanwhile, Breedon has released its 2024 results this morning (March 5).

Underlying revenue increased by 6% to £1.57bn, while underlying profit before tax rose by 4% to £150.8m.