CRH PLC CRH announces divestment of Europe Distribution (6089F)
July 16 2019 - 1:00AM
UK Regulatory
TIDMCRH
RNS Number : 6089F
CRH PLC
16 July 2019
Press Release
CRH announces divestment of Europe Distribution business
CRH plc, the global building materials group, announces that it
has reached agreement to divest of its Europe Distribution business
(the "Business") to private equity funds managed by Blackstone for
an Enterprise Value of EUR1.64 billion* payable in cash. The
transaction is subject to regulatory approval.
The 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 6 countries in Western Europe. In 2018
the Business generated proforma EBITDA of EUR155 million on
proforma sales of EUR3.7 billion; profit before tax for the year
amounted to EUR124 million and gross assets at year-end amounted to
EUR1.9 billion.
This divestment follows a comprehensive strategic review of the
Business over the last several months which considered all options
to maximise value for shareholders. It concludes the exit from our
distribution businesses across the Group, creating a simpler and
more focused business.
The Group's strategy of actively managing its portfolio for
higher growth, more sustainable returns and efficiently allocating
capital to maximise shareholder value has resulted in its decision
to divest of the Business at an attractive valuation. The proceeds
from the divestment will be used for general corporate purposes,
value creating acquisitions and capital returns to shareholders
through our ongoing share buyback programme.
Commenting on this development, Albert Manifold, CRH Chief
Executive, said:
"The transaction announced today 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."
*The Enterprise Value excludes a further EUR50 million of
additional consideration which is contingent on the satisfaction of
certain other contractual clauses.
****
For further information, please contact CRH plc at Dublin 404
1000 (+353 1 404 1000)
Albert Manifold Chief Executive
Senan Murphy Finance Director
Frank Heisterkamp Head of Investor
Relations
About CRH
CRH (LSE: CRH, ISE: CRG, NYSE: CRH) is the leading building
materials business in the world, employing c.90,000 people at
c.3,700 operating locations in 32 countries. It is the largest
building materials business in North America, the largest heavyside
materials business in Europe and has a number of strategic
positions in the emerging economic regions of Asia and South
America. CRH manufactures and supplies a range of integrated
building materials, products and innovative solutions which can be
found throughout the built environment, from major public
infrastructure projects to commercial buildings and residential
structures. A Fortune 500 company, CRH is a constituent member of
the FTSE 100 index, the EURO STOXX 50 index, the ISEQ 20 and the
Dow Jones Sustainability Index (DJSI) Europe. CRH's American
Depositary Shares are listed on the NYSE.
For more information visit www.crh.com.
Registered Office: No 12965. Registered Office: 42 Fitzwilliam
Square, Dublin 2, R02 R279, Ireland
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END
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