BREEDON GROUP PLC has announced the acquisition of BMC Enterprises Inc. for an enterprise value of US$300 million. This strategic move marks the company's entry into the US construction materials market, launching its scalable third platform. BMC, headquartered in St Louis, Missouri, is a supplier of ready-mixed concrete, aggregates, and building products with a strong track record of growth. The acquisition is expected to be earnings enhancing for shareholders while maintaining a strong balance sheet.

In the twelve months ended 31 October 2023, BMC recorded unaudited Revenue of US$178.9 million and unaudited adjusted EBITDA of US$35.5 million. The headline enterprise value represents approximately 8.5x 2023 unaudited adjusted EBITDA. BMC has shown impressive growth through organic means and bolt-on acquisitions, with over 400 million tonnes of reserves and resources.

The transaction involves approximately US$285 million payable in cash on completion, funded through a drawdown on Breedon's existing Revolving Credit Facility, and around US$15 million payable in Breedon shares. The completion is expected to occur by 7 March 2024, subject to customary closing conditions, and is anticipated to be earnings enhancing in the first full year of ownership.

Rob Wood, Chief Executive Officer of Breedon Group, expressed enthusiasm about the acquisition, stating, "The acquisition of BMC represents a compelling opportunity for Breedon to launch our third platform in the USA." He highlighted BMC's excellent performance track record, strong management team, and alignment with Breedon's business model. The acquisition is expected to provide flexibility for dividends and future bolt-on acquisitions across each of Breedon's platforms.

This announcement contains inside information and is part of UK domestic law. Breedon Group plc is a leading vertically-integrated construction materials group in Great Britain and Ireland, delivering essential products to the construction sector. With this acquisition, Breedon aims to strengthen its presence in the USA and continue its growth trajectory.