CRH has said that it has reached agreement to dispose of its clay and concrete businesses in the UK and its clay business in the US to funds managed by Bain Capital Europe LLP for an enterprise value of GBP414m (EUR522m). This amount excludes real estate assets with an estimated market value of GBP£30m that are being retained by CRH for future disposal.
The transaction is subject to regulatory approvals and is expected to close in 1H15.
The business being divested comprises clay companies Ibstock in the UK 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 accordingly, the net cash consideration payable to CRH is expected to be approximately GBP295m.
In 2013, the business generated profit before tax of GBP16m. Gross assets of the Business at 31 December 2013 totaled approximately GBP300m.
CRH said all proceeds received will be used for general corporate purposes.