Summary
CRH Public Ltd Co announced on December 15, 2014, the agreement to dispose of its UK clay and concrete products businesses, along with its US clay business, to funds managed by Bain Capital Europe LLP. The total Enterprise Value (EV) for this transaction is GBP£414 million (Euro€522 million), with CRH retaining real estate assets valued at approximately GBP£30 million for future sale. This strategic divestment simplifies CRH's business portfolio by shedding these specific segments, which generated a profit before tax of GBP£16 million in 2013 and had gross assets totaling around GBP£300 million as of December 31, 2013.
Key Highlights
- 1CRH is divesting its UK clay and concrete products businesses and its US clay business.
- 2The buyer is funds managed by Bain Capital Europe LLP.
- 3The total Enterprise Value (EV) of the transaction is GBP£414 million (Euro€522 million).
- 4CRH will retain real estate assets with an estimated market value of GBP£30 million.
- 5The net cash consideration expected by CRH is approximately GBP£295 million, after Bain Capital assumes certain debt and pension liabilities.
- 6The divested businesses generated GBP£16 million in profit before tax in 2013.
- 7The transaction is subject to regulatory approvals and is expected to close in the first half of 2015.
Frequently Asked Questions
CRH is selling its clay and concrete products businesses in the United Kingdom, and its clay business in the United States. These include companies like Ibstock and Forticrete in the UK, and Glen Gery in the US.
The Enterprise Value (EV) for the transaction is GBP£414 million (Euro€522 million). CRH expects to receive approximately GBP£295 million in net cash after the buyer assumes certain liabilities.
All proceeds received by CRH from this disposal will be used for general corporate purposes.
The transaction is subject to regulatory approvals and is anticipated to close in the first half of 2015.