CRH disposes of UK clay and concrete products firms and US clay firm

723 CRH, the international building materials group, says it has reached agreement to dispose of its clay and concrete businesses in the United Kingdom and its clay business in the United States (combined referred to as ‘the Business’) to funds managed by Bain Capital Europe for an Enterprise Value of €522million. This amount excludes real estate assets with an estimated market value of €37.8 million that are being retained by CRH for future disposal.

The transaction is subject to regulatory approvals and is expected to close in H1 2015.

The Business being divested comprises clay companies Ibstock in the UK and Glen Gery in the US, as well as UK concrete products companies Forticrete and Supreme Concrete. As part of the transaction Bain will assume certain debt and pension liabilities relating to the Business and, accordingly, the net cash consideration payable to CRH is expected to be just under €372 million.

In 2013, the Business generated profit before tax of € 20.16 million. Gross assets of the Business at 31 December 2013 totalled approximately €378.07 million.

CRH says all proceeds received by the group will be used for general corporate purposes.