Breedon buys limestone quarry near St Louis for $120 million
Breedon Group PLC on Tuesday said it agreed to buy Falling Springs Quarry for an equity value of $120 million.
The Derby, England-based construction materials firm said Falling Springs ‘is a well-invested, highly automated quarry with 185 million tonnes of limestone reserves’. It is located near St Louis, Missouri, and its annual output is roughly 2.2 million tonnes.
Falling Springs will be absorbed in Breedon’s existing US operations, with the deal expected to be immediately accretive to Breedon’s earnings and margin, it said.
Breedon funded the acquisition through an existing revolving credit facility, and noted that it expects its proforma covenant leverage as of December, after accounting for the deal, to be 2.0 times, in line with its framework.
Breedon Chief Executive Rob Wood 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.’
Shares in Breedon rose 3.1% to 283.80 pence on Tuesday morning in London, but are down 37% over the past year. The company has a market capitalisation of £985.0 million.
At its annual general meeting in April, Breedon said first-quarter trading was in line with expectations, reporting revenue growth of roughly 5% on-year, with an ‘encouraging’ start in the US and Ireland offsetting softer trading in Britain.
At the time, Breedon indicated that ‘residential demand will remain challenging for the remainder of 2026; however non-residential, which comprises the majority of our end-market exposure, is expected to be more resilient.’
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