8-K

CRH PUBLIC LTD CO 8-K Report (Jul 16, 2019)

Filed July 16, 2019For Securities:CRH

Summary

CRH plc, a global building materials group, announced on July 16, 2019, that it has entered into an agreement to divest its entire Europe Distribution business to private equity funds managed by Blackstone. The transaction is valued at an Enterprise Value of €1.64 billion, to be paid in cash, with an additional €50 million in contingent consideration. This strategic divestment, following a comprehensive review, marks CRH's complete exit from its distribution businesses, aligning with its strategy to create a simpler, more focused company with higher growth and more sustainable returns. The Europe Distribution business includes CRH's General Builders Merchants operations across six Western European countries, supplying building materials to professional builders, contractors, and DIY customers. In 2018, this business generated proforma EBITDA of €155 million on sales of €3.7 billion. The proceeds from this sale are slated for general corporate purposes, value-creating acquisitions, and capital returns to shareholders via ongoing share buyback programs, underscoring CRH's commitment to efficient capital allocation and maximizing shareholder value.

Key Highlights

  • 1CRH announces divestment of its entire Europe Distribution business to Blackstone for an Enterprise Value of €1.64 billion (cash).
  • 2An additional €50 million in contingent consideration is part of the agreement.
  • 3The divestment signifies CRH's complete exit from its distribution businesses, creating a simpler and more focused company.
  • 4The Europe Distribution business generated proforma EBITDA of €155 million on sales of €3.7 billion in 2018.
  • 5Proceeds will be used for general corporate purposes, strategic acquisitions, and share buybacks.
  • 6This move is part of CRH's active portfolio management strategy to enhance shareholder value.

Frequently Asked Questions

CRH is divesting its entire Europe Distribution business, which includes its General Builders Merchants operations in six Western European countries, to private equity funds managed by Blackstone.

The transaction has an Enterprise Value of €1.64 billion, payable in cash, with potential for an additional €50 million in contingent consideration. In 2018, the divested business generated proforma sales of €3.7 billion and proforma EBITDA of €155 million.

The proceeds will be utilized for general corporate purposes, to fund value-creating acquisitions, and to return capital to shareholders through ongoing share buyback programs.

This divestment is part of CRH's comprehensive strategic review and active portfolio management. It allows CRH to exit its distribution businesses, creating a simpler, more focused company with improved operational efficiency and a stronger emphasis on higher growth and sustainable returns.