Breedon Group makes £238 million US acquisition
Construction materials firm Breedon Group has announced the acquisition of a US business for in excess of £238m.
The group, which has quarries in Shropshire, has acquired BMC Enterprises Inc, supplier of ready-mixed concrete, aggregates and building products, headquartered in St Louis.
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."
The news comes as Breedon revealed record revenue in audited annual results for the year ended December 31.
Revenue rose by 7% to £1.48bn although profit before tax dipped slightly to £134.4m.
Mr 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."
