8-K

CRH PUBLIC LTD CO 8-K Report (Sep 21, 2017)

Filed September 21, 2017For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced on September 21, 2017, a significant strategic move with the agreement to acquire Ash Grove Cement Company for US$3.5 billion. This acquisition positions CRH to strengthen its presence in the North American building materials market, particularly in the cement sector. Ash Grove is a leading US cement manufacturer with extensive operations and assets across the US Midwest, including multiple cement plants, readymixed concrete facilities, aggregates, and logistics. The transaction, subject to shareholder and regulatory approvals, is expected to be financed through existing financial resources and close by the end of 2017. For the year ended December 31, 2016, Ash Grove reported a profit before tax of US$215 million and gross assets of US$2.5 billion. This acquisition aligns with CRH's strategy to invest in high-quality businesses that enhance its global asset base and drive shareholder value, building upon a long-standing customer relationship between the two companies.

Key Highlights

  • 1CRH has agreed to acquire Ash Grove Cement Company for US$3.5 billion.
  • 2The acquisition is a strategic move to expand CRH's presence in the US cement market.
  • 3Ash Grove operates eight cement plants and has significant readymixed concrete, aggregates, and logistics assets across the US Midwest.
  • 4Ash Grove reported US$215 million in profit before tax and US$2.5 billion in gross assets for the year ended December 31, 2016.
  • 5The transaction is expected to close around the end of 2017, subject to approvals.
  • 6Financing for the acquisition will be through existing financial resources.
  • 7The acquisition deepens a long-standing relationship between CRH (as a major customer) and Ash Grove.

Frequently Asked Questions

The acquisition is driven by CRH's strategy to deploy capital into high-quality businesses that enhance its global asset base and create shareholder value. Ash Grove significantly strengthens CRH's position in the US cement market and its overall building materials portfolio in North America.

CRH intends to finance the US$3.5 billion acquisition through its existing financial resources.

The transaction is expected to close around the end of 2017, subject to receiving necessary shareholder and regulatory approvals.

For the year ended December 31, 2016, Ash Grove reported a profit before tax of US$215 million and had gross assets totaling US$2.5 billion. The company also plans to make a special dividend of excess cash and certain investments prior to closing.