CRH to divest its Building Envelope business for $3.8 billion
CRH, the largest building materials business in both Europe and North America, has agreed to divest of its Building Envelope business to KPS Capital Partners, LP for an enterprise value of $3.8 billion. The Business comprises CRH’s entire Building Envelope business which provides architectural glass, storefront systems, architectural glazing systems and related hardware to customers primarily in North America.
In 2020, the Business generated IFRS EBITDA of $337 million, profit before tax of $210 million and gross assets at 30 June 2021 amounted to $2.5 billion. The consideration, payable on closing, includes cash of $3.45 billion together with a transfer of lease liabilities of $0.35 billion. The transaction is subject to customary conditions and regulatory approvals.
The decision to divest at an attractive valuation follows a comprehensive review of the Business and demonstrates CRH’s active approach to portfolio management, the efficient allocation of capital and the creation of a simpler and more focused group.
