Breedon makes US readymix acquisition

Construction materials and quarrying group Breedon has entered the US market with the acquisition of readymix supplier BMC Enterprises Inc for US$300 million (£238 million).

The deal, which is expected to close today (7 March 2024), involves US$285 million (£224 million) payable in cash on completion using an existing credit facility and then $15 million (£11.7 million) payable in Breedon shares.

Missouri-based BMC was founded as Breckenridge Material Company by FE Breckenridge in 1925

BMC – originally Breckenridge Material Company – is a supplier of ready-mixed concrete, aggregates and building products headquartered in St Louis, Missouri. It turned over US$179 million last year and has more than 400 million tonnes of reserves and resources.

Rob Wood, Breedon’s chief executive officer, said: “The acquisition of BMC represents a compelling opportunity for Breedon to launch our third platform in the USA. BMC has an excellent performance track record over a sustained period and is 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 USA.”