Breedon Group plc announced the acquisition of Lionmark Construction Companies LLC for an enterprise value of $238 million. Lionmark Construction Companies, located in St. Louis, is one of Missouri’s largest and most diversified privately held companies. Its family of companies has been providing construction and material services for infrastructure projects throughout the Midwest since 1932 and continues to be an innovative, dynamic, driving force in the construction industry.
The company has been recognized for excellence in safety, quality and customer satisfaction, thanks to its team’s commitment to building and maintaining highways/bridges, manufacturing asphalt, supplying asphalt emulsions/sealers and producing construction aggregates.
The move is expected to more than double Breedon’s U.S. revenue, increasing vertical-integration and diversifying its U.S. product offering into asphalt and surfacing.
Benefits include attractive markets, with growing demand underpinned by structural increases in transport infrastructure investment and Lionmark’s long-standing relationships with state transport authorities and large contractors, the company stated.
Breedon noted that the acquisition is a strong cultural fit, with a high-quality management team and a complementary asset base facilitating a straightforward integration into BMC, Breedon’s existing U.S. platform.
Andy Arnold, managing director, Breedon U.S., commented, “The acquisition of Lionmark represents a significant milestone in the development of our U.S. business. Lionmark is extremely complementary to our existing operations, diversifying BMC’s product to supply asphalt and surfacing solutions into an attractive market which is well-positioned for future growth.”
Rob Wood, chief executive officer, commented, “The acquisition of Lionmark will more than double our U.S. 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. 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.”