Construction materials firm Breedon Group has expanded its US presence with the £187m acquisition of Lionmark, a Missouri-based construction materials and surfacing solutions business.
CEO Rob Wood expects the takeover to more than double Breedon's US revenue and be "immediately earnings enhancing" for shareholders, with completion anticipated by 7 March, as reported by .
Lionmark reported record revenue of £192m and record adjusted pre-tax earnings of £24.1m last year, focusing on road infrastructure.
This acquisition news coincides with Breedon's record annual revenue of £1.58bn, a 6% year-on-year increase.
Breedon first entered the US market last March with the £238.1m acquisition of BMC Enterprises, a supplier of ready-mixed concrete and building products.
The company's M&A pipeline remains "well-populated," hinting at potential future deals.
Underlying pre-tax earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 11% to £269.9m, exceeding analyst expectations. Breedon also announced a 7% year-on-year dividend increase to 14.5p per share.
This solid performance comes despite the construction industry facing challenges in the º£½ÇÊÓƵ and US over the past year, with Breedon's shares rising around 12% in the last 12 months.
Reflecting on a year of strategic growth and resilience, Breedon's chief executive officer, Rob Wood praised the company's performance, saying "2024 was another successful year for Breedon. We entered the US market, delivered record revenue in the face of challenging conditions, and took care of our people."
He continued to express his satisfaction with the trajectory of the company: "When I reflect on another year of progress at Breedon I am struck by how much we have changed and improved. We have extended our model downstream and into new geographies, grown our team and expanded our market position."
Highlighting the essence of the company's enduring success, Wood added, "Even more striking is what has remained the same. By staying true to our purpose of making a material difference while living our values, we have built a bigger and better Breedon."
