Breedon will draw on revolver for $300 million acquisition of BMC

Chicago, March 6 – Breedon Group plc will draw on an existing revolving credit facility to fund the $285 million cash payment for the acquisition of BMC Enterprises Inc., according to a notice.

The other $15 million of the acquisition price will be payable in Breedon shares.

Closing is expected to occur by March 7.

Post-acquisition pro forma covenant leverage for the group is expected to be around 1.4x. The company will maintain flexibility for dividends and future bolt-on acquisitions.

Located in Birmingham, U.K., Breedon manufactures reconstituted stone products used in construction. The company was previously called Ennstone plc. BMC, based in St. Louis, Miss., is a supplier of ready-mixed concrete, aggregates and building products.

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