Breedon Group Announces Lionmark Acquisition

Breedon Group (LON: BREE) announced the acquisition of Missouri-based Lionmark Construction Companies for $238 million (£187 million) on Wednesday.

The deal is expected to more than double Breedon’s US revenue while expanding its presence in asphalt and surfacing solutions.

Lionmark, a key player in the US road infrastructure sector, recorded $246 million in revenue and $31 million in adjusted EBITDA for the year ending November 2024. 

The acquisition is expected to strengthen Breedon’s US footprint and bring long-standing relationships with state transport authorities and major contractors.

“The acquisition of Lionmark represents a significant milestone in the development of our US business,” said Andy Arnold, Managing Director of Breedon US. “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.”

Breedon will fund the deal primarily through cash, with $226 million paid upfront and $12 million in Breedon shares, which the vendors will hold for at least a year. 

The company expects to generate at least $3 million in annual synergies within three years, with returns covering the cost of capital by 2027.

CEO Rob Wood emphasised the scale of the expansion, stating, “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.”

Completion is expected by 7 March, pending approvals.