Brickworks Building Products is pleased to announce that it has entered into an agreement to acquire assets of Redland Brick, a wholly owned subsidiary of Belden Holding & Acquisition Company, Inc (Belden), based in Williamsport, Maryland, for up to US$48 million (AU$70 million).
This purchase follows the acquisition of Iowa based brick maker, Sioux City Brick, in August, and the purchase of Glen-Gery in November last year.
The Redland Brick purchase price comprises US$35 million in upfront payments and up to US$13 million in deferred payments, subject to certain conditions being met.
Redland Brick offers an expansive range of moulded and extruded face bricks, pavers and thin bricks for both architectural and residential markets.
The acquisition is comprised of five production lines across four manufacturing sites, including two in Maryland, and one in each Pennsylvania and Virginia, with a total capacity to producing around 250 million bricks per year.
The AU$70 million acquisition is a welcomed addition to the Brickworks Group, says Brickworks Managing Director, Lindsay Partridge.
“We are pleased to welcome the Redland Bricks staff joining the Brickworks Group, as we continue our expansion in the United States. With a suite of well-recognised brands including the highly renowned Cushwa handmade ad moulded bricks, the acquisition will further extend our industry-leading range and premium product positioning.”
“We look forward to building on the strong position it has established in the Northeast and Midwest regions of the United States,” he adds.
Speaking about their US business performance, Mr Partridge said; “We are pleased with the rate of growth over the past 12 months, with our initial targets being achieved, and a range of growth initiatives being progressively implemented. The integration of Sioux City Brick is now largely complete.”
“The next priority for the business will be the effective integration of the Redland Operations and delivering already identified cost reduction initiatives. Longer-term, we believe significant additional upside will be generated through optimisation of distribution channels, introducing new products, and applying our unique market strategy focussed on style and premium product positioning”.
“As we have done in Australia, we will take an active role to lead the industry in the promotion of bricks. In light of the well-published structural failures and concerns over other sub-standard building materials being used around the world, we take pride in the timeless appeal and durability of our products”.