8-K

CRH PUBLIC LTD CO 8-K Report (Jun 3, 2022)

Filed June 3, 2022For Securities:CRH

Summary

CRH plc has announced a significant strategic move with an agreement to acquire Barrette Outdoor Living, Inc. for $1.9 billion. This acquisition, valued at approximately 10 times Barrette's pre-synergy EBITDA, aligns with CRH's strategy of active portfolio management and capital reallocation to drive shareholder value. The deal follows CRH's recent divestment of its Building Envelope business, signaling a focused approach on core building material solutions. The acquisition of Barrette, a leading North American provider of residential fencing and railing solutions, is expected to strengthen CRH's Architectural Products segment, which has been a strong growth area. Barrette's portfolio of sustainable outdoor living solutions is seen as a complementary addition that will enhance CRH's offerings and cater to growing consumer demand for enhanced outdoor spaces. The transaction is anticipated to close in the second half of 2022, financed through existing financial resources.

Key Highlights

  • 1CRH agrees to acquire Barrette Outdoor Living, Inc. for an enterprise value of $1.9 billion.
  • 2The acquisition multiple is approximately 10x EBITDA pre-synergies.
  • 3This move demonstrates CRH's strategy of active portfolio management and capital reallocation.
  • 4Barrette Outdoor Living is a leading North American provider of residential fencing and railing solutions.
  • 5The acquisition is expected to enhance CRH's Architectural Products business and its sustainable outdoor living solutions offering.
  • 6The transaction is financed through existing financial resources and is expected to close in the second half of 2022, subject to regulatory approval.
  • 7Barrette reported $79 million in profit before tax and $1.2 billion in gross assets for the year ended January 1, 2022.

Frequently Asked Questions

The acquisition aligns with CRH's strategy of active portfolio management and efficient capital allocation to create shareholder value. It strengthens CRH's Architectural Products business and its offering of sustainable outdoor living solutions in North America by adding Barrette's leading position in residential fencing and railing.

The transaction will be financed through CRH's existing financial resources.

The transaction is subject to regulatory approval and is expected to close in the second half of 2022.

For the year ended January 1, 2022, Barrette reported a profit before tax of $79 million and gross assets of $1.2 billion. The acquisition multiple is approximately 10 times Barrette's pre-synergy EBITDA, indicating a significant investment in a profitable business.