CRH Announces Divestment of Europe Distribution Business
CRH plc, the global building materials group, announces that it has reached agreement to divest of its Europe Distribution business (the “Business”) to private equity funds managed by Blackstone for an Enterprise Value of €1.64 billion payable in cash. The transaction is subject to regulatory approval.
The Business comprises CRH’s entire General Builders Merchants business in Europe, including its Sanitary Heating and Plumbing business. It supplies building materials to professional builders, specialist contractors and DIY customers through a network of local and regional brands across 6 countries in Western Europe. In 2018 the Business generated proforma EBITDA of €155 million on proforma sales of €3.7 billion; profit before tax for the year amounted to €124 million and gross assets at year-end amounted to €1.9 billion.
This divestment follows a comprehensive strategic review of the Business over the last several months which considered all options to maximise value for shareholders. It concludes the exit from our distribution businesses across the Group, creating a simpler and more focused business.
The Group’s strategy of actively managing its portfolio for higher growth, more sustainable returns and efficiently allocating capital to maximise shareholder value has resulted in its decision to divest of the Business at an attractive valuation. The proceeds from the divestment will be used for general corporate purposes, value creating acquisitions and capital returns to shareholders through our ongoing share buyback programme.
Commenting on this development, Albert Manifold, CRH Chief Executive, said:
“The transaction announced today demonstrates the continued execution of CRH’s strategy of creating value for our shareholders through active portfolio management, the efficient allocation of capital and creating a simpler and more focused Group going forward. We wish our colleagues in Europe Distribution every success as they enter this new phase of their development.”
CRH (LSE: CRH, ISE: CRG, NYSE: CRH) is the leading building materials business in the world, employing c.90,000 people at c.3,700 operating locations in 32 countries. It is the largest building materials business in North America, the largest heavyside materials business in Europe and has a number of strategic positions in the emerging economic regions of Asia and South America. CRH manufactures and supplies a range of integrated building materials, products and innovative solutions which can be found throughout the built environment, from major public infrastructure projects to commercial buildings and residential structures. A Fortune 500 company, CRH is a constituent member of the FTSE 100 index, the EURO STOXX 50 index, the ISEQ 20 and the Dow Jones Sustainability Index (DJSI) Europe. CRH’s American Depositary Shares are listed on the NYSE.
Albert Manifold – Chief Executive – +353 1 404 1000
Source: CRH plc