Construction materials firm Breedon Group has acquired US-based Lionmark for £187m as it continues to expand its presence across the Atlantic.
Chief executive Rob Wood said he expected the takeover to more than double Breedon Group’s US revenue and be “immediately earnings enhancing” for shareholders.
It is expected to be completed by 7 March.
Missouri-headquartered Lionmark is a constuction materials and surfacing solutions business with a focus on road infrastructure. It reported record revenue of £192m and record adjusted pre-tax earnings of £24.1m last year.
News of the acquisition came as Breedon also posted record annual revenue of £1.58bn, up six per cent year-on-year.
The firm first entered the US market last March via the £238.1m acquisition BMC Enterprises, a supplier of ready-mixed concrete and building products.
Breedon on Wednesday said its M&A pipeline remained “well-populated,” in an indication more deals may follow.
On an underlying basis, pre-tax earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 11 per cent to £269.9m, ahead of analysts expectations.
Breedon Group also announced plans to increase dividends per share to 14.5p, up 7 per cent year-on-year.
Such a solid performance comes despite the wider construction industry enduring a challenging period over the last year in markets including the UK and US.
Shares are up around 12 per cent over the last 12 months.
“2024 was 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,” chief executive officer Rob Wood said,
He added: “When I reflect on another year of progress at Breedon I am struck by how much we have changed and improved. We have extended our model downstream and into new geographies, grown our team and expanded our market position.
“Even more striking is what has remained the same. By staying true to our purpose of making a material difference while living our values, we have built a bigger and better Breedon.