Breedon to acquire Lionmark for US$238 million
Earnings-enhancing US transaction as Group reports fourth successive year of record revenue
BREEDON Group plc are to acquire Lionmark Construction Companies LLC – a leading Missouri-based construction materials and surfacing solutions business with a focus on road infrastructure end markets – for an enterprise value of US$238 million (£187 million). The acquisition is expected to more than double Breedon’s US revenue, increasing vertical-integration and diversifying their US product offering into asphalt and surfacing.
In the 12 months ended 30 November 2024, Lionmark recorded unaudited revenue of US$246 million and unaudited adjusted EBITDA of US$31 million. The company, which is backed by around 100 million tonnes of reserves and resources, has eight quarries, four asphalt plants, and a bitumen import and processing facility, and around 400 employees. Completion is expected to occur by Friday 7 March 2025, subject to customary closing conditions.
This latest transaction follows the acquisition of BMC Enterprises Inc – a leading regional ready-mixed concrete, aggregates and building products business, also based in Missouri – in March 2024 for an enterprise value of US$300 million (£238.1 million).
Andy Arnold, managing director of Breedon US, commented: ‘The acquisition of Lionmark represents a significant milestone in the development of our US business. Lionmark is extremely complementary to our existing operations, diversifying BMC’s product to supply asphalt and surfacing solutions into an attractive market which is well-positioned for future growth.’
Rob Wood, Breedon’s chief executive officer, said: ‘The acquisition of Lionmark will more than double our US revenue and is expected to be immediately 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.
‘In a year we have built a US business of scale that is already on a pro-forma basis the equivalent size of our Irish business. We are delighted to welcome our new colleagues to Breedon and look forward to working with them as we continue to expand Breedon’s presence in the US.’
Meanwhile, Breedon Group plc have reported a fourth successive year of record revenue and delivering underlying results ahead of expectations for the 12 months ended 31 December 2024. Driven by entry into the US, revenue increased by 6% to £1,576.3 million (2023: £1,487.5 million), whilst underlying EBITDA increased by 11% to £269.9 million (£242.3 million) and underlying EBITDA margin increased 80bps to 17.1% (16.3%). Pre-tax profit increased by 4% to £150.8 million (£144.9 million).
Chief executive officer Rob wood remarked: ‘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. I am extremely proud of what our team has accomplished. What they deliver is remarkable and does not happen by chance. It takes grit, resolve, and a relentless focus on getting the job done, and so I thank them for ‘making it happen’.
‘Entering 2025 we have three strong platforms, a first-class team, an abundance of opportunity, and our markets are poised for recovery. Our refreshed Breedon 3.0 strategy means that everything we need for success is now in place and I am more excited than ever for our future.’
