Shares in Breedon Group Plc (LSE:BREE) jumped 11% after it announced a $238 million (£187 million) acquisition to expand its US business.
The UK company's second US purchase is Lionmark Construction Companies LLC, a construction materials and road surfacing specialist based in the US state of Missouri.
With Lionmark having made revenues of $246 million and underlying profit (EBITDA) of $31 million in the year to 30 November 2024, the acquistion is expected to be immediately earnings enhancing and more than double Breedon's US revenue.
As well as assets of around 100 million tonnes of reserves and resources, Breedon expects to generate synergies of at least $3 million per year by the third year of ownership.
Breedon will pay $226 million cash on completion, funded from its existing bank facility, with roughly $12 million paid in shares to be retained by the vendors for a minimum of 12 months. Completion is expected by the end of this week.
CEO Rob Wood said: "In a year we have built a US business of scale that is already on a pro-forma basis the equivalent size of our Irish business."