Heavy Clay

Brickworks acquires largest independent brick distributor in USA

20/10/2021

The acquisition will expand the scale of Brickworks’ direct distribution network by increasing the number of its stores in the Midwest from 10 to 27

Lindsay Partridge

Brickworks, Australia’s leading building material manufacturer, has entered into a binding agreement to acquire certain assets of Southfield Corporation, including Illinois Brick Company (IBC), for US $51.1 million.

Illinois Brick Company (IBC) was established in 1981 and has expanded over the past four decades through organic growth and acquisitions. It is now the largest independently owned and operated brick distributor in the US with 17 showrooms and distribution yards, all located in Illinois and Indiana.

Trading under a range of well-known and long-established brands, almost half of IBC’s revenue is generated through sales of around 70 million bricks per annum. In addition, IBC offers a range of complementary building materials and supplies such as stone and masonry.

“We have enjoyed a strong relationship with IBC since our entrance into the US market in 2018,” said Brickworks’ Managing Director Lindsay Partridge. “This acquisition is a logical strategic fit and will significantly increase the scale of our direct distribution network, increasing our store count in the Midwest from 10 to 27.”

The increase in sales volume through the IBC network will be underpinned by the production capacity of the Brickworks plants located in the Midwest: Marseilles in Illinois, Adel and Sergeant Bluff in Iowa, Caledonia and Iberia in Ohio, and Cynthiana in Kentucky.

The outlook for the region is strong, with building activity expected to increase over the next five years, across both residential and non-residential segments. Recently announced government stimulus, including support for state and local infrastructure projects such as schools and universities, is also expected to boost construction activity in the region.

tags