CRH divests its European Distribution business for EUR1.64bn

CRH has agreed the divestment of its European Distribution business to private equity funds managed by Blackstone for an enterprise value of EUR1.64bn in cash, subject to regulatory approval.

The divested business unit consists of CRH's entire general builders merchants business in Europe, including its sanitary heating and plumbing business that serve professional builders, contractors and DIY customers across six countries. In 2018 the business unit generated proforma EBITDA of EUR155m on proforma sales of EUR3.7bn. Profit before tax amounted to EUR124m.

Albert Manifold, CRH CEO, 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 focussed group going forward. We wish our colleagues in Europe Distribution every success as they enter this new phase of their development."