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CRH strikes agreement for $3.5BN acquisition

Dublin-headquartered building materials group CRH has reached an agreement to acquire a US cement manufacturer for $3.5bn (£2.59bn/€2.95bn).

Ash Grove Cement Company is headquartered in Overland Park, Kansas. It operates eight cement plants across the US, as well as extensive ready-mixed concrete, aggregates and associated logistics assets.

For the year to 31 December 2016, it reported pre-tax profits of $215m (£159m/€181m) and had gross assets of $2.5bn (£1.85bn/€2.1bn).

The proposed transaction, which will be financed through existing financial resources, is subject to Ash Grove shareholder and regulatory approvals. It is expected to close before the year-end 2017.

Albert Manifold, chief executive of CRH, said: "Ash Grove is an excellent addition to CRH's portfolio of businesses across North America as we seek to deploy our capital into high quality businesses that enhance our global asset base and provide opportunities to create shareholder value.

"We welcome the Ash Grove team to CRH and look forward to further developing our longstanding relationship as part of one company."

Charlie Sunderland, chairman of the board of Ash Grove, added: "CRH, as our largest customer, has enjoyed a close and highly productive relationship with Ash Grove for many decades.

"The board of directors believes that CRH will be able to bring Ash Grove on the next phase of its development after 135 years in operation and over a century under the stewardship of the Sunderland family."

Source: CRH