Breedon Group has expanded its presence in the US through the acquisition of Lionmark in a multi-million-dollar deal.
The US$238 million for the Missouri-headquartered Lionmark is expected to more than double Breedon’s US revenue and expand its US product offering into asphalt and surfacing. Lionmark specialises in construction materials and surfacing solutions, including road infrastructure.
“The acquisition of Lionmark represents a significant milestone in the development of our US business,” Breedon US managing director Andy Arnold said.
“Lionmark is extremely complementary to our existing operations, diversifying BMC’s product to supply asphalt and surfacing solutions into an attractive market that is well-positioned for future growth.”
According to the release from Breedon Group, the asset is backed with c.100 million tonnes3 of reserves and resources. Breedon’s release said the acquisition gave the company access to “attractive markets” featuring “growing demand” in transport infrastructure investment and Lionmark’s long-standing relationships with state transport authorities and large contractors.
Breedon chief executive officer Rob Wood said the transaction would provide attractive financial returns while maintaining a strong and flexible balance sheet.
“The acquisition of Lionmark will more than double our US revenue, 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,” he said.
“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 United States.”
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