CRH agrees $2.1 billion US acquisition and $1.1 billion European divestment
CRH plc, the leading provider of building materials solutions, has reached an agreement to acquire an attractive portfolio of cement and ready-mixed concrete assets in Texas, USA from Martin Marietta Materials, Inc. for a total consideration of $2.1 billion. The assets being acquired comprise a 2.1 mt capacity cement plant located between San Antonio and Austin, a network of terminals along the eastern gulf coast of Texas and a portfolio of 20 ready-mixed concrete plants with annual shipments of c.1.6m cubic yards serving the Austin and San Antonio markets.
The combined portfolio of assets is expected to generate pro-forma 2023 EBITDA of approximately $170 million.
Albert Manifold, Chief Executive of CRH, said: “The acquisition of these high-quality assets further strengthens our market leading position in Texas and increases our exposure to attractive, high-growth markets. Our ability to leverage our cement expertise and technical capabilities will enable us to enhance and optimize our existing footprint in Texas, resulting in significant synergies and self-supply opportunities. This transaction reflects our disciplined approach to capital allocation as well as our commitment to deliver further growth and value creation for our shareholders. We also believe there is significant potential to unlock additional growth opportunities across an expanded footprint in this attractive growth market.”
The proposed transaction is subject to regulatory approval and is expected to complete in H1 2024.
$1.1 Billion Divestment of European Lime Operations
CRH plc has also reached an agreement to divest its lime operations in Europe to SigmaRoc plc for a total consideration of c.$1.1 billion. The transaction is subject to customary conditions and regulatory approvals.
The Business comprises 16 operating locations with leading market positions across Ireland, the UK, Germany, Czech Republic and Poland. The combined Business generated sales of c.$610 million and EBITDA of c.$137 million in 2022.
The transaction is structured in three phases, the first of which is expected to complete in early 2024 comprising the Group’s lime operations in Germany, Czech Republic and Ireland. The remaining phases, consisting of operations in the UK and Poland, are expected to complete in 2024.
Albert Manifold said: “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 proceeds from the divestment will provide us with significant additional capital allocation opportunities to deliver further growth and value creation for our shareholders.”
