8-K

CRH PUBLIC LTD CO 8-K Report (Nov 24, 2023)

Filed November 24, 2023For Securities:CRH

Summary

CRH Public Limited Company announced an agreement to divest its European lime operations to SigmaRoc plc for approximately $1.1 billion. This strategic move is part of CRH's active portfolio management strategy and is expected to provide significant capital for future growth and shareholder value creation. The divestment encompasses 16 operating locations across Ireland, the UK, Germany, Czech Republic, and Poland, which generated approximately $610 million in sales and $137 million in EBITDA in 2022. The transaction will be executed in three phases, with the first phase, including operations in Germany, Czech Republic, and Ireland, anticipated to close in early 2024. The remaining phases, involving UK and Polish operations, are expected to conclude later in 2024, subject to customary closing conditions and regulatory approvals. This divestment underscores CRH's focus on optimizing its business portfolio and reallocating capital towards opportunities that drive enhanced shareholder returns.

Key Highlights

  • 1CRH has agreed to sell its European lime operations to SigmaRoc plc for a total consideration of approximately $1.1 billion.
  • 2The divestment is a strategic portfolio management decision by CRH, aimed at unlocking capital for future growth and shareholder value.
  • 3The European lime business generated approximately $610 million in sales and $137 million in EBITDA in 2022.
  • 4The transaction involves 16 operating locations across Ireland, the UK, Germany, Czech Republic, and Poland.
  • 5The sale will be completed in three phases, with the first phase expected in early 2024 and the remainder by the end of 2024.
  • 6Proceeds from the divestment will provide CRH with significant capital allocation opportunities.
  • 7The transaction is subject to customary closing conditions and regulatory approvals.

Frequently Asked Questions

The divestment is expected to generate approximately $1.1 billion in proceeds, providing CRH with significant capital to pursue further growth opportunities and enhance shareholder value. The European lime operations contributed approximately $610 million in sales and $137 million in EBITDA in 2022, indicating the scale of the business being divested.

The transaction is structured in three phases. The first phase, involving operations in Germany, Czech Republic, and Ireland, is expected to be completed in early 2024. The remaining phases, consisting of operations in the UK and Poland, are anticipated to conclude later in 2024. The entire divestment is subject to customary conditions and regulatory approvals.

CRH views this divestment as a strategic decision following a comprehensive review of the business, aligning with its active approach to portfolio management. The company aims to reallocate capital to areas that offer greater potential for growth and value creation for its shareholders.

The divestment includes CRH's European lime operations, comprising 16 operating locations. These operations hold leading market positions in Ireland, the UK, Germany, Czech Republic, and Poland.