Bain Capital to acquire CRH’s UK concrete and clay businesses


Buildings material company CRH has agreed to sell its UK-based concrete and clay businesses as well as its U.S.-based clay business to Bain Capital for 522 million euros. Among the businesses being sold are Ibstock and Glen Gery. As a result of the transaction, Bain will assume some of the debt related to the divested businesses.

PRESS RELEASE

15 December 2014

CRH plc, the international building materials group, announces today that it has reached agreement to dispose of its clay and concrete businesses in the United Kingdom and its clay business in the United States (together the “Business”) to funds managed by Bain Capital Europe LLP (“Bain”) for an Enterprise Value (EV) of GBP£414 million (Euro€522million). This amount excludes real estate assets with an estimated market value of GBP£30 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 approximately GBP£295 million.
In 2013, the Business generated profit before tax of GBP£16 million. Gross assets of the Business at 31 December 2013 totaled approximately GBP£300 million.
All proceeds received by CRH will be used for general corporate purposes.