Acquisition
Summary by AI BETAClose X
BREEDON GROUP PLC
Acquisition of Falling Springs Quarry for US$120 million
Premium aggregates bolt-on transaction to grow Breedon's US business
Breedon Group plc ("Breedon" or the "Group"), a leading vertically-integrated construction materials group in Great Britain, Ireland and the United States, announces that it has completed the acquisition of Falling Springs Quarry ("Falling Springs")1 for an enterprise value of $120m (£90m2) (the "Transaction").
Falling Springs is a well-invested, highly automated quarry with 185 million tonnes3 of limestone reserves strategically located approximately 15 minutes from downtown St Louis, Missouri. The quarry has an output of over 2.2 million tonnes per annum and will be integrated with Breedon's existing operations in the region, enhancing the Group's US platform and unlocking opportunities for further growth through vertical integration.
The Transaction is expected to be immediately margin and earnings enhancing4 and was funded through Breedon's existing Revolving Credit Facility. Following the Transaction, the Group's pro-forma covenant leverage5 at 31 December 2025 would have been 2.0x which remains in line with the Group's financial framework.
The acquisition is in line with Breedon's stated strategy to expand through disciplined, value-accretive M&A as the Group scales its US business.
Rob Wood, Chief Executive Officer of Breedon Group plc, commented:
"The acquisition of Falling Springs Quarry represents an attractive bolt-on investment which strengthens our US platform with a premium aggregates asset in an exceptionally strategic location.
The business is well-invested, highly cash generative and extremely complementary to our existing operations in the St Louis area, supporting our long-term growth ambitions in the United States."
Notes:
1. Falling Springs Quarry is the sole trading asset of Casper Stolle Quarry & Contracting Co, the legal entity acquired by Breedon as a result of the Transaction
2. GBP: USD exchange rate of 1:1.33.
3. Breedon's best estimate of Falling Springs Quarry's reserves at the date of this announcement, expressed as metric tonnes.
4. This statement should not be construed as a profit forecast or interpreted to mean that the future earnings per share, profits, margins or cashflows of the Group will necessarily be greater than the historic published figures.
5. Pro Forma Covenant Leverage is the Covenant Leverage of the Group calculated assuming the Transaction had completed on 31 December 2025. Covenant Leverage is defined as the ratio of Underlying EBITDA to Net Debt, with both Underlying EBITDA and Net Debt amended to reflect the material items which are adjusted by the Group and its lenders in determining leverage for the purpose of assessing covenant compliance.
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ENQUIRIES |
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Breedon Group plc |
+44 (0) 1332 694010 |
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Rob Wood, Chief Executive Officer James Brotherton, Chief Financial Officer |
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Anthony Thorpe, Director of Corporate Development & Investor Relations |
+44 (0) 7935 503649 |
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MHP (Public relations adviser) |
+44 (0) 7595 461231 |
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Reg Hoare, Rachel Farrington, Charles Hirst breedon@mhpgroup.com
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About Breedon Group plc
Breedon Group plc, a leading vertically-integrated construction materials group in Great Britain, Ireland and the United States, delivers essential products to the construction sector. Breedon holds 1.7bn tonnes of mineral reserves and resources with long reserve life, supplying value-added products and services, including specialty materials, surfacing and highway maintenance operations, to a broad range of customers through its extensive local network of quarries, ready-mixed concrete and asphalt plants.
The Group's two well-invested cement plants are actively engaged in a number of carbon reduction practices, which include utilising alternative raw materials and lower carbon fuels. Breedon's 4,800 colleagues embody our commitment to 'Make a Material Difference' as the Group continues to execute its strategy to create sustainable value for all stakeholders, delivering growth through organic improvement and acquisition in the heavyside construction materials market. Breedon shares (BREE) are traded on the Main Market of the London Stock Exchange and are a constituent of the FTSE 250 index.
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LEI: 213800DQGNQE3X76WS92
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