Building materials giant CRH is to sell its lime operations in Europe in a $1.1 billion (€1 billion) deal with SigmaRoc.
The deal, which is subject to regulatory approval, includes 16 operating locations in Ireland, Britain, Germany, the Czech Republic and Poland. Last year, the businesses generated a total of $610 million in sales and earnings before interest, tax, depreciation and amortisation of $137 million.
The first phase of the deal, which includes the operations in Germany, the Czech Republic and Ireland, is expected to close early next year. The remaining phases – the UK and Poland businesses – will close later in 2024.
CRH’s Irish lime business – Clogrennane Lime – operates from Clogrennane, Co Carlow and Toonagh in Co Clare. It employs 31 people, according to the company.
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“The decision to divest at an attractive valuation follows a comprehensive review of the business and demonstrates CRH’s active approach to portfolio management,” said Albert Manifold, chief executive of CRH.
“The proceeds from the divestment will provide us with significant additional capital allocation opportunities to deliver further growth and value creation for our shareholders.”
The decision to sell the businesses came a day after CRH said it was upgrading its forecasts after a strong third quarter and now expects full-year profit to be “well ahead” of the $3.5 billion reported for last year. Group sales jumped 8 per cent in the third quarter, the company said in a trading update on Tuesday.
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It also announced a deal on Tuesday to buy a portfolio of cement and ready-mixed concrete assets in Texas from Martin Marietta Materials in a deal worth $2.1 billion. The lion’s share of the group’s business and sales are now in the United States.
That prompted CRH to move its primary listing to the New York Stock Exchange in September, dropping its Irish listing in the process. The company said on Wednesday it has sent shareholders fresh information on how to manage their shares in the business now that they had been transferred to the US, what the move means for tax on dividends, and the steps required if they wish to sell them.
