Breedon Group, a construction materials group operating in Great Britain, Ireland and the U.S., acquired Lionmark Construction Companies for $238 million.
The acquisition of Lionmark, a construction materials and surfacing solutions company based out of Missouri, is expected to more than double Breedon’s U.S. revenue. Additionally, the move will diversify Breedon’s U.S. product offering by incorporating asphalt and surfacing.
The acquisition comes at a time when Breedon says it is poised to benefit from attractive markets, with growing demand underpinned by structural increases in transportation infrastructure investment. Lionmark’s long-standing relationships with state transport authorities and large contractors is another key point of this deal for Breedon.
Breedon says Lionmark is a strong cultural fit for its company with a high-quality management team and a complementary asset base facilitating straightforward integration into Breedon’s existing U.S. platform.
“The acquisition of Lionmark … 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,” says Rob Wood, Breedon’s CEO. “In a year, we have built a U.S. 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.”
Andy Arnold, managing director of Breedon U.S., shares Wood’s excitement.
“The acquisition of Lionmark represents a significant milestone in the development of our U.S. business,” Arnold says. “Lionmark is extremely complementary to our existing operations, diversifying our product to supply asphalt and surfacing solutions into an attractive market which is well-positioned for future growth.”
Related: Breedon Group purchases BMC Enterprises in $300M deal
