Brickworks announced the acquisition of Glen-Gery, the fourth largest brick manufacturer in the USA.
At a purchase price of $AUS 151m ($US 110m) Glen-Gery is anticipated to provide steady earnings in the first full year of operation as the latest member of the Brickworks Group.
A successful enterprise, Glen-Gery has leading market positions in the US Midwest, Northeast and Mid-Atlantic states. With 10 manufacturing plants, its annual sales are approximately 230 million bricks.
Lindsay Partridge AM, Managing Director Brickworks Limited says, “The acquisition is a significant milestone in the history of our organisation. We believe the transaction provides an ideal entry into the US market, with Glen-Gery having established a leading market position in the key North-Eastern region, a reputation for premium products and high exposure to the architectural market.”
This springboard into the US provides exposure to a large, attractive market with strong demand drivers and offers enormous opportunities to extend our strategic reach. In fact, the US brick market is approximately three times larger than the Australian market with annual sales revenue estimated at USD 2.2 billion. At a time when the Australian property market and construction sector are slowing the outlook for residential and commercial construction activity in the US remains positive.
The acquisition provides Brickworks with significant long-term growth opportunities. The US brick industry is highly fragmented with around 37 manufacturers compared to 5 in Australia. Three times larger than the Australian market, the US brick market is a wide-open opportunity, especially with regard to growth and potential future acquisitions. Watch this space.