First publishedon www.AggBusiness.com
CRH chief executive Albert Manifold
Irish building materials giant CRH has completed the €1.64bn sale of its European distribution business to private equity funds managed by Blackstone.
The completion of the sale comes after a divestment agreement was reached on 16 July this year. The European distribution business comprises CRH’s entire General Builders Merchants business in Europe, including its Sanitary Heating and Plumbing business. It supplies building materials to professional builders, specialist contractors, and DIY customers through a network of local and regional brands across six countries in Western Europe. In 2018, the business generated proforma EBITDA of €155 million on proforma sales of €3.7 billion; profit before tax for the year amounted to €124 million and gross assets at year-end amounted to €1.9 billion.
Commenting after the divestment agreement was reached in July, Albert Manifold, CRH chief executive, said: “The transaction demonstrates the continued execution of CRH’s strategy of creating value for our shareholders through active portfolio management, the efficient allocation of capital and creating a simpler and more focused Group going forward. We wish our colleagues in Europe Distribution every success as they enter this new phase of their development.”