Brickworks (ASX:BKW) can trace its history back to 1908, when their heritage business, Austral Bricks, was incorporated in Sydney. In 1962 the company listed on the ASX as Brickworks Limited.
Today, they have a market capitalization of $4.3 billion, with a portfolio of diversified assets that comprises of a 26% stake in Washington H Soul Pattinson (ASX:SOL), a property division which comprises of two Joint Venture Property Trusts with Goodman Group (GMG), and two Substantial building products businesses in Australia and North America.
The company has four distinct divisions.
Source: Brickworks Website
Building Products, Australia: Is a manufacturer and distributor of building products across all Australian states. Since 2002, the Building Products Group has grown from a two-state brick manufacturer, in New South Wales and Queensland, to a diversified national building products business. In total, Building Products Australia comprises 20 manufacturing sites (currently operating), 33 company-owned design centres and studios and a vast network of resellers across the country.
Building Products, North America: was established upon the acquisition of Glen-Gery in November 2018. This was followed by further bolt-on acquisitions of Sioux City Brick in August 2019, Redland Brick assets in February 2020 and Illinois Brick Co assets in August 2021. Brickworks North America now has a leading position in the Midwest, Northeast and Mid-Atlantic states, and has a strong focus on architectural and premium products. It has seven currently operating brick manufacturing sites and one manufactured stone plant. This is complemented by a network of 26 company-operated distribution outlets, three design studios (New York, Philadelphia and Baltimore) and a vast reseller network.
Property: The Property division was originally established to maximise the value of land that is surplus to the Building Products business. Over time, the Property division has evolved and now consists of two Joint Venture Property Trusts with Goodman Group, plus 100%-owned land holdings, both operational and for development. Brickworks holds a 50% interest in the Industrial JV Trust. As of 31st Dec 2023, BKW’s share of net asset value in the property segment was $1.9bn.
Investment: Consists primarily of a 26.1% interest in SOL, which sits on BKW’s balance sheet with a value of $3.2bn as of…
