CRH plc has announced that it has reached an agreement to divest its clay and concrete businesses in the UK and its clay business in the US. The business will be acquired by funds managed by Bain Capital Europe LLP for an enterprise value of £414 million. This excludes real estate assets, which have an estimated market value of £30 million. These assets will be held by CRH for future disposal.
The business to be sold includes the UK-based Ibstock and US-based Glen Gery clay companies, as well as UK concrete products companies Forticrete and Supreme Concrete.
Bain will take on certain debt and pension liabilities relating to the business, meaning that the net cash consideration payable to CRH is expected to be around £295 million. CRH will use all proceeds from the sale for general corporate purposes.
The transaction, which is subject to regulatory approvals, is expected to close in 1H15.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/15122014/crh-to-divest-uk-clay-and-concrete-businesses-and-us-clay-business-10/