Breedon Group (UK) is acquiring US-based BMC Enterprises (BMC) for US$300 million (£ 238.1mn) and celebrating record annual trading figures.
BMC supplies ready-mixed concrete, aggregates and building products headquartered in St Louis, Missouri. The company has a strong track record of both organic and transactional growth.
The move marks the taking of what Breedon, a leading vertically integrated construction materials group in Great Britain and Ireland, describes as a "compelling opportunity" to launch a scalable third platform for the Group in the fragmented and growing US construction materials market.
The acquisition is expected to deliver attractive financial returns for Breedon while maintaining a strong balance sheet.
In the 12 months ending 31 October 2023, BMC recorded unaudited revenue of US$ 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
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.
