Breedon acquire BMC Enterprises Inc
US$300,000 million acquisition establishes Breedon’s third platform and entry into US market
BREEDON Group plc have announced the acquisition of BMC Enterprises Inc – a leading regional ready-mixed concrete, aggregates and building products business in the US – for an enterprise value of US$300 million (£238.1 million).
Founded in 1925 and headquartered in St Louis, Missouri, BMC have a strong track record of organic and transaction-led growth, with a 10-year revenue and EBITDA CAGR of 12% and 22% respectively, and an EBITDA margin of c.20%.
The company had unaudited gross assets as at 31 October 2023 of US$168.2 million (£133.5 million), recorded unaudited revenue of US$178.9 million (£142.0 million) and unaudited adjusted EBITDA for the 12 months ending 31 October 2023 of US$35.5 million (£28.2 million).
BMC operate five hard rock quarries, seven sand and gravel facilities (including river dredging operations), 44 ready-mixed concrete plants, nine building products facilities, and have more than 400 million tonnes of reserves and resources. The business, which is predominantly located in Missouri with further operations in Illinois and Arkansas, employs around 570 people.
BMC are owned by president and chief executive officer Nathan McKean and entities closely associated with him. On completion, Mr McKean will transition to a non-executive advisory role in Breedon’s North America business, providing the Group with the continued benefit of his significant sector and country experience.
The wider BMC management team will remain with the business, including chief operating officer Andy Arnold, chief financial officer John Crumrine, and chief HR officer Mark Jacobs. On completion, which is expected to occur by 7 March 2024, subject to customary closing conditions, Andy Arnold will be appointed chief executive officer of BMC.
Commenting on the acquisition, Rob Wood, chief executive officer of Breedon, said: ‘The acquisition of BMC represents a compelling opportunity for Breedon to launch our third platform in the US. BMC have an excellent performance track record over a sustained period and are 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 US.’
