CRH acquires Indian producer
12 August 2013
Materials producer CRH’s 50:50 joint venture in India has acquired 3.2 million tonnes-per-year cement producer Sree Jayajothi Cements for INR 1,400 crore (US$ 233 million).
CRH entered the Indian market in 2008 with the acquisition of a 50% stake in MHIL, a cement business located in Andhra Pradesh in South India.
CRH said the joint venture’s acquisition of Sree Jayajothi, also in Andhra Pradesh, would be financed from MHIL’s existing debt and by € 70 million (US$ 93 million) equity. CRH’s equity interest will amount to € 35 million (US$ 46.6 million).
With the addition of Sree Jayajothi, CRH said MHIL would become the market leader in the Andhra Pradesh region, benefitting from complimentary market coverage.
The news comes after expansive CRH grew its presence in Ukraine back in April with the acquisition of Mykolaiv Cement from Lafarge for € 96 million (US$ 128 million). Last year, the company spent € 630 million (US$ 838 million) on acquisitions.