Irish global building materials major CRH and the Barro Group (Barro) have announced the completion of their AUS$2.1 billion (US$1.4bn) acquisition of Australia-based Adbri.
The deal closure has seen CRH acquire the remaining 57% of the ordinary shares of Adbri, which Barro does not own.
Speaking after the binding deal agreement for Adbri was struck in February this year, Albert Manifold, chief executive of CRH, said: “We are pleased to reach this important milestone in the potential acquisition of Adbri in partnership with the Barro family. Adbri is an attractive business with high-quality assets and leading market positions that complement our core competencies in cement, concrete and aggregates while creating additional opportunities for growth and development for our existing Australian business. We look forward to working with the Barro family over the coming years to enhance the long-term growth and performance of Adbri.”
Adbri’s 2023 full-year underlying EBITDA was $311 million, up 30.9% on 2022. The company’s 2023 annual report states: “Our performance was the result of strong demand for our cement, concrete and aggregates products across key markets, with pricing and cost discipline supporting improved earnings.
“Underlying net profit after tax attributable to members of Adbri for 2023 was $111.7 million, up 43.8% on 2022. 2023 revenue increased 13.1%, to $1.92 billion (2022: $1.70 billion) and although there are signs of inflationary pressures moderating, they remain elevated above historic levels.”
The 2023 annual report lists Adbri’s key achievements last year as investing in its future business through strategic cement asset upgrades, including the Kwinana Upgrade Project which was over 70% complete as at 31 January 2024, delivering operational efficiencies through its new decentralised business model, supported
by strong leadershipAdbri’s long-term growth and performance, launching branded lower carbon products to the market, improving customer choice and customer experience through the use of enhanced sales and analysis systems and tools that are supporting pricing traction.
Adbri says it is committed to a “world class hybrid electric battery limestone vessel to deliver efficiencies and support our net zero emissions goal”.
Capital management remains a priority for Adbri, with net debt of $682.1 million (2022: $576.4 million); up on the prior year as the company funds the completion of the Kwinana Upgrade Project (KWUP). The Board decided not to declare dividends in 2023 and will continue to review the company’s capacity to return funds to shareholders.
