Sycomore Corporate Finance acted as a financial adviser to CRH
CRH has market leading positions and covers all segments of the building materials sector in developed, transition and emerging markets. It operates 24 integrated cement plants together with 10 grinding stations for a total capacity of approximately 36 million tonnes per annum.
The transaction more than doubles CRH’s cement production volumes and will further expand its aggregates and ready-mixed concrete portfolios. CRH becomes the third largest building materials player globally and the world #2 in aggregates.
The acquisition has significant value creation potential as CRH has identified €90m of synergies (net of implementation costs) (1.8% of CRH revenues) that will be achieved in the first three years post acquisition. These synergies will be delivered by implementing CRH’s procurement programmes, reducing costs through operational improvements and restructuring support services.
The transaction is a key step towards the creation of LafargeHolcim and the value offered reflects the strong quality of the selected assets.
LafargeHolcim are divesting assets in Europe to CRH (France, Germany, Hungary, Romania, Serbia, Slovakia and UK) and in the rest of the world (Canada, Brazil, India, Mauritius, The Philippines and United States).
CRH (LSE: CRH, ISEQ: CRG, NYSE: CRH) is a leading diversified international building materials group, employing 93,000 people at c.4,000 operating locations in 37 countries worldwide. With a market capitalisation of c. €22bn (July 2015), CRH is the largest building materials company in North America and the third largest worldwide. The Group has leadership positions in Europe as well as established strategic positions in the emerging economic regions of Asia and South America.
CRH is a global producer of cement, aggregates, ready-mix and related construction activities across four major platforms in North America, Western Europe, Central & Eastern Europe and Emerging Markets. In 2013 CRH produced 23mt of cement, 79mt of aggregates, 8mt of Asphalt and 10m m³ of RMC. CRH is expected to generate 2014 revenue of €5.1bn and EBITDA of €752m. Approximately two-thirds of CRH’s revenue is generated in the European region. Outside Europe, Canada is the largest country in terms of 2014 revenue, generating €1.0bn, with Brazil and the Philippines generating a further combined €0.6bn.
CRH has approximately 15,000 employees across 11 countries (Canada, the United States, Great Britain, Romania, Serbia, Slovakia, Hungary Germany, France & La Reunion, Brazil and the Philippines).