Australian building products group Brickworks (ASX: BKW) has added to its fast-growing US brick manufacturing network with the purchase of RedlandBrick Inc for $70 million.
The Sydney company bought four modern manufacturing sites in Maryland, Pennsylvania and Virginia, adding to its portfolio of brick making assets in the north east of the country.
While Redland has been selling 80 million bricks annually, the sites have a capacity to make 250 million bricks a year.
Brickworks managing director Lindsay Partridge said : “With a suite of well-recognised brands, including the highly renowned Cushwa handmade and moulded bricks, the acquisition will further extend our industry-leading range and premium product positioning.”
Brickworks entered the US market in August with the purchase of Sioux City Brick and expanded in November when the purchase of the assets of Glen-Gery.
“We have quickly established a strong position as the largest brickmaker in our key target market – the architecturally focused north east, midwest and mid Atlantic regions.”
The company is now leading a process of rationalisation in the market, and with the latest acquisition will have sales of $290 million a year and a capacity to make 400 million bricks.
Brickworks has been introducing Australian premium products to the markets, rationalising distribution and production, and adopting a marketing-focused approach promoting bricks.
Picture: Redland Brick Inc
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