In the Americas, CRH reached agreement to sell its Americas Distribution business to Beacon Roofing Supply, for a total consideration of $2.63 billion in cash (c.€2.2 billion).
Americas Distribution, which has been part of the CRH Group for over 20 years, has historically executed a growth strategy based on focused acquisitions, selective greenfields and investments in private label products.
In 2016, Americas Distribution reported EBITDA of €150 million on sales of €2.3 billion; profit before tax for the year amounted to €121 million, and gross assets at H1 2017 amounted to €1.2 billion.
In accordance with the Ggroup’s strategy, the proceeds from the divestment of Americas Distribution will be reallocated to value creating acquisitions and investments.
In this context, CRH’s Europe Heavyside business has agreed to acquire Fels, a leading German lime and aggregates business, for €0.6 billion (EV).
With nine production locations in Germany and one each in the Czech Republic and in the Moscow region of Russia, Fels has leading market positions in the lime markets in each of these areas and over 1 billion tonnes of high quality limestone reserves.
The company has been a division of
CRH is a leading lime producer in the UK, Poland and Ireland with annual production volumes of 1.2 million tonnes and sales of €180 million.
he integration of Fels with CRH’s existing business will give CRH a number 2 position in the attractive European lime market while providing a platform for further growth.
In 2016, Fels reported EBITDA of €70 million on sales of €260 million.
These transactions are in addition to the H1 2017 development spend of €632 million on 13 acquisition/investment transactions, and disposal proceeds of €145 million, as reported in CRH’s 2017 Interim Results announcement today.
“These transactions announced today demonstrate the execution of CRH’s strategy of adding value through the efficient allocation and reallocation of capital, and in particular the deployment of capital into an attractive growth market in Europe, while maintaining our financial discipline,” says Albert Manifold, CRH Chief Executive.
“We are pleased that our Americas Distribution business is being acquired by a highly respected industry player and we wish our colleagues every success as they enter this new phase of their development. At the same time we see significant value creation potential from the Fels acquisition announced today, which will also be an exciting new development platform for CRH.”
