Breedon Group, a construction materials group in the UK, has announced the acquisition of US-based business BMC Enterprises for an enterprise value of $300m.聽聽
This acquisition will present Breedon with an opportunity to create a third platform in the US construction materials market.
BMC, headquartered in St. Louis, Missouri, is a supplier of ready-mixed concrete, aggregates, and building products.聽聽
The company is claimed to have registered a robust track record of growth, both organically and through transactions.
It manages five hardstone quarries and seven sand and gravel facilities, including river dredging operations, 44 ready-mixed concrete plants, and nine building products facilities.聽
The acquisition is expected to be completed by 7 March 2024, subject to customary closing conditions.
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By GlobalDataMeanwhile, Breedon anticipates that the transaction will enhance its earnings in the first full year of ownership.聽
Breedon CEO Rob Wood said: 鈥淎s 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鈥檚 culture and values are fully aligned with the Breedon business model.聽聽
鈥淭he 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.鈥�
Moelis & Company is serving as the financial advisor to Breedon for this acquisition while Morrison & Foerster has provided legal advice to the company.
