CRH to sell brick maker Ibstock
Company to dispose of clay and concrete products businesses in UK and clay business in US
DUBLIN-based international building materials group CRH plc have reached agreement to dispose of their clay and concrete businesses in the UK and their clay business in the US to funds managed by Bain Capital Europe LLP for an enterprise value (EV) of £414 million.
The EV amount excludes real estate assets with an estimated market value of £30 million that are being retained by CRH for future disposal.
According to CRH, the transaction, which is subject to regulatory approvals, is expected to close during the first half of 2015.
The business being divested comprises clay companies Ibstock, the largest brick manufacturers 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 these businesses and, accordingly, the net cash consideration payable to CRH is expected to be approximately £295 million.
In 2013, these businesses generated a pre-tax profit of £16 million, while the gross assets of the businesses at 31 December 2013 totalled approximately £300 million.
CRH say all proceeds received from the disposals will be used for general corporate purposes.
