UK building services group Breedon seeks more acquisitions in Ireland and US

UK building materials and services group Breedon is looking to expand into the US market, but also bolster its existing operations in Ireland and the UK through further acquisitions.

British construction materials and services company Breedon Group is looking at Ireland and the US for acquisition opportunities as it looks for further growth after exiting the pandemic crisis on a strong footing.

Breedon, which solely operates in the UK and Ireland at present, said its pre-tax profits amounted to £114.3m (€137.6m) last year; 138% ahead of the heavily Covid-impacted previous year but still 21% ahead of pre-pandemic 2019 levels. 

The group generated revenues of just over £1.23bn last year, 33% up on both 2020 and 2019.

Commenting on what was a record year, Breedon chief executive Rob Wood said: “We navigated the second year of the pandemic successfully, supplied our customers with more materials than at any point in our history and fully integrated the Cemex assets."

Breedon acquired the UK assets of international cement giant Cemex in 2020.  It now intends to pursue further acquisition opportunities in the UK, Ireland and the US, where it currently does not have a presence.

"We see a number of bolt-on opportunities to infill our current footprint in Britain and Ireland. Further afield, we have appointed a business development director in the US as we advance our plans for a third platform," Mr Wood said.

"Breedon is maturing. There are strong demand dynamics in our markets and we have many exciting opportunities ahead of us in the current year and beyond," he said.

Breedon entered the Irish market in 2018 through the €500m takeover of civil engineering company Lagan. It also owns Whitemountain – a paving and street lighting business – in the North.

"Breedon has come a long way in the past decade and we have a consistent track record for profitable and cash-generative expansion," Mr Wood said. 

"We have a strong balance sheet and will continue to take a measured approach to deploying our capital, taking the time required to find the right businesses to extend our portfolio. The building blocks are in place for our next chapter of growth," he said.

Breedon said it is confident of growing profits and cash generation this year, with demand in its core markets remaining “robust”.