Acquisition
6 de marzo de 2024
NO PARA LA DIVULGACIÓN, PUBLICACIÓN O DISTRIBUCIÓN, EN TODO O EN PARTE, DIRECTA O INDIRECTAMENTE, EN, EN O DESDE CUALQUIER JURISDICCIÓN DONDE HACERLO CONSTITUIRÍA UNA VIOLACIÓN DE LAS LEYES O REGLAMENTOS PERTINENTES DE DICHA JURISDICCIÓN.
ESTE ANUNCIO CONTIENE INFORMACIÓN INTERIOR
PLC DEL GRUPO BREEDON
Acquisition of BMC Enterprises Inc. for US$300 million
Earnings enhancing US entry; launching Breedon's scalable third platform
Breedon Group plc ("Breedon" or the "Group"), a leading vertically-integrated construction materials group in Great Britain and Ireland, announces the acquisition of BMC Enterprises Inc. ("BMC") for an enterprise value of US$300m (£238.1m1) (the "Transaction").
Destacados estratégicos
· BMC is a supplier of ready-mixed concrete, aggregates and building products headquartered in St Louis, Missouri with a strong track record of both organic and transactional growth
· Compelling opportunity to launch a scalable third platform for Breedon in the fragmented and growing US construction materials market
· Underpinned by highly attractive, established business with excellent margins
· Well regarded and experienced management team with long track record who will remain with the business
· Transaction expected to provide attractive financial returns while maintaining a strong balance sheet
Aspectos financieros más destacados
· In the twelve months ended 31 October 2023, BMC recorded unaudited Revenue of US$178.9m and unaudited adjusted EBITDA of US$35.5m2
· Headline enterprise value represents c.8.5x 2023 unaudited adjusted EBITDA
· Since 2013 BMC has delivered CAGR Revenue and adjusted EBITDA growth of c.12% and c.22% respectively through organic growth and bolt-on acquisitions
· BMC has over 400 million tonnes3 of reserves and resources
Aspectos destacados de la transacción
· c.US$285m payable in cash on completion, subject to customary adjustments and retentions, funded through a draw down on Breedon's existing Revolving Credit Facility
· c.US$15m payable in Breedon shares, to be retained by the Vendor for a minimum of twelve months following Completion
· Completion is expected to occur by 7 March 2024; subject to customary closing conditions
· Expected to be earnings enhancing in the first full year of ownership4
· Post-acquisition Pro Forma Covenant Leverage for the Group of c.1.4x5; enabling flexibility for dividends and future bolt-on acquisitions across each of our platforms
Rob Wood, director ejecutivo, comentó:
"The acquisition of BMC represents a compelling opportunity for Breedon to launch our third platform in the USA. BMC has an excellent performance track record over a sustained period and is positioned in an attractive market for future growth.
"As a high-quality aggregates and concrete business that has grown at pace, organically and through acquisitions, with a strong management team and deep local knowledge, BMC's culture and values are fully aligned with the Breedon business model.
"The acquisition is expected to be 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.
"We are delighted to welcome our BMC colleagues to Breedon and look forward to working with them to build Breedon's presence in the USA."
Notas:
1. GBP: USD Exchange Rate of 1: 1.26
2. BMC financials have been extracted from the management accounts of BMC and adjusted for items which will not reoccur under Breedon ownership. BMC financials are unaudited and have been prepared under US GAAP so may not be directly comparable to Breedon financials which are prepared under IFRS.
3. Breedon and BMC's best estimate of BMC's reserves and resources 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 ratio of the Group's Underlying EBITDA to Net Debt calculated assuming that the transaction had completed on 31 December 2023. Covenant Leverage is used in determining compliance with the Group's banking covenants.
Este anuncio contiene información privilegiada a los efectos del artículo 7 del Reglamento sobre abuso de mercado (UE) n.º 596/2014, ya que forma parte de la legislación nacional del Reino Unido en virtud de la Ley de la Unión Europea (Retirada) de 2018 (modificada).
CONSULTAS | |
Grupo Breedon plc | +44 (0) 1332 694010 |
Rob Wood, director ejecutivo James Brotherton, director financiero | |
Louise Turner-Smith, Directora de Relaciones con Inversores | +44 (0) 7860 911909 |
Moelis (asesor financiero de Breedon) | +44 0 20 7634 3500 |
Mark Aedy, Chris Raff, Andrew Welby | |
| |
MHP (asesor de relaciones públicas) | +44 0 20 3128 8100 |
Reg HoareRachel FarringtonCharles Hirst
|
Acerca de Breedon Group plc
Breedon Group plc, un grupo líder en materiales de construcción integrado verticalmente en Gran Bretaña e Irlanda, ofrece productos esenciales para el sector de la construcción. Breedon posee 1 millones de toneladas de reservas y recursos minerales con una vida útil prolongada, y suministra productos y servicios de valor agregado, incluidos materiales especiales, superficies y operaciones de mantenimiento de carreteras, a una amplia gama de clientes a través de su extensa red local de canteras, concreto premezclado y plantas de asfalto.
Las dos plantas de cemento del Grupo, con buenas inversiones, participan activamente en una serie de prácticas de reducción de carbono, que incluyen la utilización de materias primas alternativas y combustibles con bajas emisiones de carbono. Los 3,900 colegas de Breedon encarnan nuestro compromiso de "Marcar una diferencia material" mientras el Grupo continúa ejecutando su estrategia para crear valor sostenible para todas las partes interesadas, generando crecimiento a través de mejoras orgánicas y adquisiciones en el mercado de materiales de construcción pesados. Las acciones de Breedon (BREE) se negocian en el mercado principal de la Bolsa de Valores de Londres y forman parte del índice FTSE 250.
Información Adicional
BMC Overview
Founded in 1925 and headquartered in St Louis, Missouri, BMC is a leading regional ready-mixed concrete, aggregates and building products business with a diverse range of end customers and markets.
BMC has a strong track record of organic and transaction led growth, with a 10 year revenue and EBITDA CAGR of 12% and 22% respectively, and an EBITDA margin of c.20%. BMC had unaudited gross assets as at 31 October 2023 of US$168.2m (£133.5m), recorded unaudited Revenue of US$178.9m (£142.0m) and unaudited adjusted EBITDA for the twelve months ending 31 October 2023 of US$35.5m (£28.2m).
BMC operates 5 hardstone quarries, 7 sand and gravel facilities (including river dredging operations), 44 ready-mixed concrete plants and 9 building products facilities. The business is predominantly located in Missouri, with further operations in Illinois and Arkansas and employs c.570 colleagues. BMC's end market exposure is estimated to be c.50% residential, c.25% commercial and c.25% infrastructure with a diverse range of customers. In the last decade BMC has successfully completed over 20 bolt-on acquisitions.
Missouri is expected to see significant inward investment in future years assisted by the Infrastructure Investment & Jobs Act, the CHIPS and Science Act and the Inflation Reduction Act.
The US remains a large and fragmented construction materials market that offers attractive prospects, in line with Breedon's rigorous investment criteria. The cultural and regulatory profile matches our home markets, playing to our experience and strong track record of acquisition integration.
BMC is owned by its President and CEO, Nathan McKean, and entities closely associated with him. On completion, Nathan McKean will transition to a non-executive advisory role to Breedon's North America business, providing the Group with the continued benefit of his significant sector and country experience.
The wider BMC management team will remain with the business including Andy Arnold (Chief Operating Officer), John Crumrine (Chief Financial Officer) and Mark Jacobs (Chief HR Officer). On completion, Andy Arnold will be appointed CEO of BMC.
Estructura de la transacción
Cash consideration of c.US$285m (£226.2m), subject to customary adjustments and retentions, is being funded by way of a draw down under Breedon's existing multicurrency RCF.
c.US$15m (£11.9m) is payable in the form of 3,199,915 Breedon shares (the "Shares") to be issued to the vendor, Nathan McKean, who has undertaken to retain all the Shares for a minimum period of twelve months from completion. Application will be made in due course for the Shares to be admitted to the premium listing segment of the Official List of the Financial Conduct Authority and to trading on the Main Market of the London Stock Exchange.
Completion is expected to occur by 7 March 2024; subject to customary closing conditions.
The Transaction is expected to be earnings enhancing in the first full year of ownership. The Group intends to maintain a conservative balance sheet to provide flexibility for dividends and future bolt-on acquisitions across each of the Group's platforms.
Breedon believes the Transaction represents a compelling opportunity for Breedon to launch our third platform in the USA. BMC has an excellent performance track record over a number of years and is well positioned in an attractive market for future growth.
Moelis and Company UK LLP ("Moelis") actúa como asesor financiero exclusivo de Breedon Group plc en relación con la adquisición de BMC y de nadie más, y no será responsable ante nadie más que Breedon Group plc por proporcionar las protecciones ofrecidas a clientes de Moelis o para proporcionar asesoramiento en relación con la adquisición de BMC.
Morrison & Foerster acted as legal adviser to Breedon on the transaction.
Este anuncio puede incluir declaraciones que son, o pueden considerarse, "declaraciones prospectivas" (incluidas palabras como "creer", "esperar", "estimar", "pretender", "anticipar" y palabras de significado similar ). Por su naturaleza, las declaraciones prospectivas implican riesgo e incertidumbre ya que se relacionan con eventos y circunstancias futuros, y los resultados reales pueden diferir, y a menudo lo hacen, materialmente de cualquier declaración prospectiva. Cualquier declaración prospectiva contenida en este anuncio refleja la opinión de la gerencia con respecto a eventos futuros a la fecha de este anuncio. Salvo que lo exija la ley aplicable, Breedon no asume ninguna obligación de revisar ninguna declaración prospectiva contenida en este anuncio, ya sea después de cualquier cambio en sus expectativas o para reflejar eventos o circunstancias posteriores a la fecha de este anuncio.
RNS puede usar su dirección IP para confirmar el cumplimiento de los términos y condiciones, para analizar cómo interactúa con la información contenida en esta comunicación y para compartir dicho análisis de forma anónima con otros como parte de nuestros servicios comerciales. Para obtener más información sobre cómo RNS y la Bolsa de Valores de Londres utilizan los datos personales que nos proporciona, consulte nuestra Política de privacidad.