Breedon Group plc (LON:BREE), a leading vertically-integrated construction materials group in Great Britain, Ireland and the United States, has announced that it has completed the acquisition of Falling Springs Quarry1 for an enterprise value of $120m (£90m2).
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.
