8-K

CRH PUBLIC LTD CO 8-K Report (Nov 24, 2010)

Filed November 24, 2010For Securities:CRH

Summary

CRH plc, a global building materials group, announced on November 22, 2010, the divestment of substantially all the assets of its U.S.-based Ivy Steel and Wire business (Ivy). The sale to Insteel Industries, Inc. was for a total consideration of $51 million (approximately €37 million). Ivy, which manufactures welded wire reinforcement and wire products for concrete construction, reported sales of $104 million in 2009. CRH stated that this divestment aligns with its strategy and that the sale is not expected to result in a gain or loss on disposal, as impairment charges related to this business were already included in the company's full-year profit guidance. This move follows CRH's earlier announcement of an agreement to dispose of certain insulation businesses in Europe.

Key Highlights

  • 1CRH plc has sold its U.S.-based Ivy Steel and Wire business (Ivy).
  • 2The total consideration for the divestment is US$51 million (approximately €37 million).
  • 3The buyer is Insteel Industries, Inc., a significant player in the U.S. steel wire reinforcing products market.
  • 4Ivy reported sales of US$104 million in 2009.
  • 5The sale is not expected to result in a gain or loss on disposal for CRH due to prior impairment charges.
  • 6This divestment is part of CRH's broader strategic moves, following an agreement to sell European insulation businesses.

Frequently Asked Questions

CRH sold substantially all the assets of its Ivy Steel and Wire business, which manufactures welded wire reinforcement and wire products for concrete construction applications in the United States.

CRH received a total consideration of US$51 million, which is approximately €37 million.

According to CRH, the sale is not expected to result in a gain or loss on disposal, as impairment charges related to this business were already factored into the company's full-year profit guidance announced on November 9, 2010.

This divestment is part of CRH's strategic repositioning. It follows an earlier announcement of the sale of certain insulation businesses in Europe and indicates a focus on optimizing its business portfolio.