8-K

CRH PUBLIC LTD CO 8-K Report (Aug 13, 2013)

Filed August 13, 2013For Securities:CRH

Summary

CRH plc, a global building materials group, announced on August 12, 2013, a significant strategic move into the Indian market. Through its 50:50 joint venture in India, My Home Industries Limited (MHIL), CRH has agreed to acquire Sree Jayajothi Cements Limited (SJCL). This acquisition is set to significantly enhance MHIL's market position in South India, particularly in the Andhra Pradesh region, making it the regional market leader.

Key Highlights

  • 1CRH, via its 50:50 joint venture My Home Industries Limited (MHIL), has agreed to acquire Sree Jayajothi Cements Limited (SJCL).
  • 2The acquisition is for 100% of SJCL's shares at an Enterprise Value of INR 14,000 million (approximately €175 million).
  • 3SJCL is a cement company with an annual capacity of 3.2 million tonnes per annum, located in South India.
  • 4This acquisition will be financed through MHIL's existing debt capacity and equity contributions from the joint shareholders, with CRH contributing approximately €35 million in equity.
  • 5Post-acquisition, MHIL will become the market leader in the Andhra Pradesh region of South India, benefiting from complementary market coverage.
  • 6CRH initially entered the Indian market in 2008 with its stake in MHIL, which already possesses a 4.8 Mtpa capacity and is a low-cost producer.

Frequently Asked Questions

The main purpose of this announcement is to inform investors that CRH plc, through its Indian joint venture MHIL, has entered into an agreement to acquire Sree Jayajothi Cements Limited (SJCL), a cement company in South India.

The acquisition has an Enterprise Value of €175 million. CRH's equity contribution will be approximately €35 million, financed from its share of the joint venture's equity inputs and debt capacity. This move is expected to bolster CRH's presence and market leadership in a key Indian region.

The acquisition of SJCL (3.2 million tonnes p.a. capacity) by MHIL, which already has a 4.8 million tonnes p.a. capacity, will make MHIL the market leader in the Andhra Pradesh region. It provides complementary market coverage and consolidates CRH's position as a leading player in the Indian cement market.

CRH first entered the Indian market in 2008 when it acquired a 50% stake in MHIL, its current joint venture partner in this acquisition.