BMC supplies ready-mixed concrete, aggregates and building products headquartered in St Louis, Missouri. The company has a strong track record of both organic and transactional growth.
The move marks the taking of what Breedon, a leading vertically integrated construction materials group in Great Britain and Ireland, describes as a "compelling opportunity" to launch a scalable third platform for the Group in the fragmented and growing US construction materials market.
Breedon says the deal sees them gain a "highly attractive, established business with excellent margins," run by a "well regarded and experienced management team with a long track record who will remain with the
business."
The acquisition is expected to deliver attractive financial returns for Breedon while maintaining a strong balance sheet.
In the 12 months ending 31 October 2023, BMC recorded unaudited revenue of US$ 178.9 million. Since 2013, BMC has delivered CAGR Revenue and adjusted EBITDA growth of c.12% and c.22% respectively through organic growth and bolt-on acquisitions
The purchase of BMC, which has over 400 million tonnes of reserves and resources, is due to be completed by 7 March 2024; subject to customary closing conditions.
Rob Wood, Breedon 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."
Breedon has revealed that its full-year 2023 revenues rose 7% to a record £1.487.5bn, with an underlying EBIT of £156.2mn, also an annual record. Breedon says its underlying EBIT achievement was due to a disciplined focus on cost recovery and self-help measures. The Group's 2023 pre-tax profit was down 1% to £134.4mn.
Commenting on the record results, Rob Wood said: "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."
