8-K

CRH PUBLIC LTD CO 8-K Report (Aug 4, 2015)

Filed August 4, 2015For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced the completion of its acquisition of certain assets from Lafarge S.A. and Holcim Ltd, a transaction with an Enterprise Value of €6.5 billion. This significant acquisition is expected to substantially bolster CRH's global standing in the building materials sector. The deal, which excludes the Philippines operations pending closure in Q3 2015, positions CRH as the third largest building materials player globally and the second largest in aggregates. Investors should note the transformative nature of this deal, which more than doubles CRH's cement production capacity and significantly expands its aggregates and ready-mixed concrete portfolios. The integration of over 685 locations across 11 countries, including major markets in North America and Western Europe, along with strategic positions in Central and Eastern Europe, Brazil, and the Philippines, underscores CRH's ambition for international growth and market leadership. The transaction also brings approximately 15,000 new employees into the CRH workforce, bringing the total to 91,000.

Key Highlights

  • 1CRH has completed the acquisition of specified assets from Lafarge S.A. and Holcim Ltd for an Enterprise Value of €6.5 billion.
  • 2The transaction significantly expands CRH's global presence, making it the third largest building materials company worldwide and the number two player in aggregates.
  • 3Acquired assets include over 685 locations across 11 countries, bolstering cement, aggregates, and ready-mixed concrete businesses.
  • 4Key geographical focuses include strengthening the North American position (Canada), expanding in major Western European markets (Great Britain, France, Germany), and establishing a leading presence in Central and Eastern Europe.
  • 5The deal also includes strategic entry positions in emerging markets like Brazil and the Philippines, with the latter expected to close in Q3 2015.
  • 6The acquisition more than doubles CRH's cement production volumes and adds approximately 15,000 employees, increasing the total workforce to 91,000.
  • 7The completion of this transaction represents a major step in CRH's strategy to enhance its diversified international building materials portfolio.

Frequently Asked Questions

This acquisition is highly significant as it substantially enhances CRH's global scale and market position. It more than doubles CRH's cement production volumes, expands its aggregates and ready-mixed concrete businesses, and elevates CRH to become the third-largest building materials player globally and the second-largest in aggregates. The integration of assets across multiple countries strengthens CRH's presence in key developed and emerging markets.

The total Enterprise Value for the acquired assets was €6.5 billion.

Yes, the completion of the transaction in the Philippines is still pending and is expected to close in the third quarter of 2015.

The acquisition will add approximately 15,000 employees to CRH, bringing the total global workforce to 91,000. It also integrates over 685 operational locations across 11 countries into CRH's network.