Global building materials group, CRH, has agreed to sell its European Distribution business to private equity funds managed by Blackstone group, in a deal valued at €1.64 billion.
The company’s European Distribution business is comprised of its General Builder’s Merchant business in Europe, including its Sanitary Heating and Plumbing business. Supplying building materials to professional builders, specialist contractors and DIY customers, the network of local and regional brands operates across six countries in Western Europe.
With a proforma EBITDA of €155 million derived from proforma sales of €3.7 billion in 2018, the European Distribution business generated €124 million of profit before tax and its gross assets at year-end amounted to €1.69 billion.
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 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.
Completion of the deal is subject to regulatory approval.