Breedon Group acquires US concrete supplier BMC Enterprises for $300m

LONDON: Breedon Group plc, a leading construction materials group in Great Britain and Ireland, has announced the acquisition of BMC Enterprises Inc., a supplier of ready-mixed concrete, aggregates and building products based in St Louis, Missouri, for an enterprise value of $300m (£238.1m).

The deal, which is expected to close by 7 March 2024, will give Breedon access to the US construction materials market, where BMC has a strong presence and a history of growth and profitability. BMC has over 400 million tonnes of reserves and resources and recorded revenue of $178.9m and adjusted EBITDA of $35.5m in the twelve months ended 31 October 2023.

Breedon Group will pay $285m in cash and $15m in shares for BMC, which will be retained by the vendor for at least a year. The transaction is expected to boost Breedon’s earnings in the first full year of ownership and maintain a strong balance sheet, with a pro forma leverage ratio of 1.4x. Breedon’s management said the acquisition will provide attractive financial returns and enable future expansion opportunities in the US.

Rob Wood, Chief Executive Officer, commented: “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.”

Breedon Group acquires three businesses in Northern Ireland and Great Britain