Summary
CRH Public Limited Company (CRH) announced on June 3, 2004, the completion of its acquisition of a 49% stake in Secil, a significant Portuguese producer of cement and readymixed concrete. This strategic move, approved by the European Commission, represents a substantial investment for CRH, positioning its Europe Materials Division as a leader in the Portuguese market. The transaction, based on an enterprise value of EUR900 million for 100% of Secil, involved CRH paying EUR333 million in cash for its stake, resulting in EUR45 million of goodwill. The acquisition is expected to yield considerable growth opportunities not only in Portugal but also in Tunisia and Lebanon, where Secil has existing operations and investments. CRH will share joint management control of Secil with the former 100% shareholder, Semapa, aiming to leverage combined expertise for business expansion across the industry supply chain, especially as the Portuguese economy and construction sector are anticipated to recover.
Key Highlights
- 1CRH has acquired a 49% stake in Secil, a major Portuguese building materials producer (cement and readymixed concrete).
- 2The transaction was cleared by the European Commission.
- 3The agreed enterprise value for 100% of Secil was EUR900 million.
- 4CRH's cash consideration for its 49% share was EUR333 million.
- 5Goodwill arising from the acquisition is EUR45 million.
- 6CRH and Semapa will exercise joint management control over Secil.
- 7The acquisition strengthens CRH's position in the Portuguese cement market and offers development opportunities in Tunisia and Lebanon.