A major player in U.S. brick production and distribution is set to change hands this month as its parent company focuses on core United Kingdom markets. Ibstock plc of Leicestershire, England, has entered into an agreement to sell Glen-Gery Corp. to Brickworks Ltd. of New South Wales, Australia, for $110 million.
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| Glen-Gery brick at the Apple Store, Brooklyn, N.Y. |
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| With annual shipments of 230 million units, Glen-Gery is the fourth largest clay brick producer in the U.S., according to Brickworks Ltd. Outlining the deal’s rationale and potential for expansion of an overseas platform, Brickworks cited the fragmented nature of the U.S. market, where 37 producers account for just over 5 billion bricks annually. |
| SOURCE: Brickworks Investor Presentation, November 2018 |
A deeply rooted brand strongest in the Northeast and Midwest, Wyomissing, Pa.-based Glen-Gery has one veneer stone and nine clay brick plants, plus 10 retail showroom and supply centers. With annual sales upward of $120 million, it will represent just over 15 percent of revenue at Brickworks, Australia’s largest brickmaker and a leading source of building and hardscape units on its home turf and New Zealand.
“We believe the transaction is an ideal market entry into the attractive U.S. industry, with Glen-Gery having established a leading market position in its core geographic area and a reputation for excellent product quality,” says Brickworks Building Products North America President Mark Ellenor. “By combining these two great businesses, we can learn from each other and become even better.”
“As leaders in our respective markets, we look forward to the potential for strengthening and expanding our combined companies,” adds Glen-Gery President Greg Silvestri. “Our partnership with Brickworks will enable shared technology advancements and innovations, and the expansion of Glen-Gery’s product diversity and market coverage.”