8-K

CRH PUBLIC LTD CO 8-K Report (Aug 27, 2015)

Filed August 27, 2015For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced on August 27, 2015, its agreement to acquire C.R. Laurence Co., Inc. (CRL) for a total consideration of US$1.3 billion. This acquisition is expected to be completed by early September 2015 and will be financed through existing financial resources. CRL is a leading North American manufacturer and distributor of hardware and installation products for the professional glazing industry, with a significant presence in the US and Canada, and growing international reach in Western Europe and Australia. The strategic rationale behind this acquisition is the creation of significant synergies by combining CRL with CRH's existing BuildingEnvelope® business. This combination aims to enhance CRH's offerings in the architectural glass and glazing systems market, leveraging CRL's product development expertise and customer focus. The integration is expected to generate substantial cost savings and market expansion opportunities through cross-selling and supply chain efficiencies.

Key Highlights

  • 1CRH to acquire C.R. Laurence Co., Inc. (CRL) for US$1.3 billion.
  • 2Acquisition expected to be completed in early September 2015.
  • 3Financing for the transaction will be through CRH's existing financial resources.
  • 4CRL is a leader in North America for custom hardware and installation products for the professional glazing industry.
  • 5The acquisition is expected to create significant synergies with CRH's BuildingEnvelope® business.
  • 6Anticipated annual synergies of US$40 million by 2017 from the combination.
  • 7CRL's senior management team will remain to ensure a smooth integration.

Frequently Asked Questions

The acquisition of CRL is strategically important as it creates a stronger, more integrated building envelope solutions provider. By combining CRL's specialized products with CRH's BuildingEnvelope® business, CRH aims to enhance its market position in North America, leverage complementary product offerings, and capture significant synergies in operations and market expansion through cross-selling.

CRH plans to finance the US$1.3 billion acquisition of CRL using its existing financial resources, indicating a strong balance sheet and no immediate need for external debt financing for this transaction.

Significant synergies are anticipated from the integration, including supply chain efficiencies, fixed cost reductions, and market expansion through cross-selling opportunities to a common customer base. CRH forecasts annual synergies of US$40 million to be generated by 2017.

As of the end of 2014, CRL reported Profit Before Tax (PBT) of US$51 million and gross assets of US$290 million. For 2015, CRL's sales are forecasted to be approximately US$570 million, with an expected EBITDA of US$115 million, before accounting for expected synergies.