Summary
CRH Public Limited Company (CRH) announced on April 26, 2013, an agreement to acquire Mykolaiv Cement from Lafarge for an upfront cash consideration of EUR 96 million, including assumed debt. This strategic acquisition, located in Western Ukraine, is expected to solidify CRH's position as the market leader in the Ukrainian cement industry. The acquisition will enable CRH to further capitalize on its existing investments in Ukraine, including the Podilsky factory commissioned in 2011 and its majority stake in Odessa Cement acquired in the same year. The addition of Mykolaiv Cement is a significant step in CRH's expansion strategy within the Eastern European building materials market.
Key Highlights
- 1CRH agrees to acquire Mykolaiv Cement from Lafarge.
- 2Acquisition price: EUR 96 million upfront cash consideration (including debt assumed).
- 3Location of Mykolaiv Cement: Lviv region of Western Ukraine.
- 4This acquisition makes CRH the market leader in Ukraine's cement sector.
- 5The deal allows CRH to further leverage its existing Ukrainian assets, including Podilsky factory and Odessa Cement.
- 6Completion of the transaction is contingent upon obtaining necessary regulatory approvals.
Frequently Asked Questions
This 8-K filing serves as a report of a material event, specifically CRH's announcement of its agreement to acquire Mykolaiv Cement, a key business in the Ukrainian cement market.
The acquisition involves an upfront cash consideration of EUR 96 million, which includes debt assumed by CRH. This transaction is expected to enhance CRH's market position and leverage existing investments in Ukraine.
CRH has a significant presence in Ukraine, having entered the market in 1999 with the acquisition of Podilsky Cement. In 2011, they commissioned a new dry process kiln at Podilsky Cement with a large clinker capacity and acquired a majority stake in Odessa Cement.
Yes, the completion of the transaction is subject to the granting of the required regulatory approvals.