CRH divestment

Irish-based international building materials group CRH is selling its clay and concrete businesses in the UK, and its clay business in the US, to funds managed by Bain Capital Europe for an enterprise value of £414 million (€521.98 million).

CRH said this amount excluded real estate assets with an estimated market value of £30 million (€37.82 million) that it is retaining for future disposal.

The transaction is subject to regulatory approvals and is expected to close in the first half of 2015.

The businesses being sold comprise UK clay company Ibstock, 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 the business, and so CRH said the net cash consideration was expected to be approximately £295 million (€371.95 million).

In 2013, the business generated profit before tax of £16 million (€20.17 million), while its gross assets at 31 December, 2013, totalled approximately £300 million (€378.17 million).