Materials giant Breedon has acquired US firm Lionmark in a deal worth £187m as it continues to strengthen its presence in the US market.
The group, which operates in Britain, Ireland and the US, said its latest acquisition would more than double its revenue in the States while paving the way for further expansion.
The deal was announced as Breedon revealed record revenue fuelled by intensifying US activity and “careful cost control” to mitigate British market headwinds and the impact of poor weather.
Its audited results for the year ending December 2024 show that while revenue overall rose by 6 per cent to more than £1.58bn, pre-tax profit was down by 7 per cent year on year to £125.4m.
Revenue in the British market dipped by 4 per cent, which Breedon said reflected a third consecutive year of volume decline and “significant challenges to onsite activity” caused by wet weather conditions.
A downturn in housebuilding activity also hit ready-mixed concrete sales, which dropped 12 per cent, it said.
The group’s increasing focus on the US market has been bolstered by its acquisition of Lionmark, a Missouri-based materials and surfacing solutions firm with an unaudited revenue of $246m (£192m).
The deal follows Breedon’s move last year to snap up ready-mixed concrete supplier BMC Enterprises, also based in Missouri, which it said had made an “encouraging initial contribution” to the group’s performance.
Chief executive officer Rob Wood said that in a year, Breedon had built a US business that on a pro-forma basis was already of a size equivalent to its Irish business.
“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,” he said.
On the group’s annual results, he said 2024 had been 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,” said Wood.
He highlighted how the group had “changed and improved” over the course of the past 12 months.
“We have extended our model downstream and into new geographies, grown our team and expanded our market position,” he said.
“Entering 2025, we have three strong platforms, a first-class team, an abundance of opportunity and our markets are poised for recovery.”
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Kerry Lorimer