CRH to sell Europe Distribution business to Blackstone for £1.4bn

WCN Editorial Team 17 Jul 2019 EUROPE BUSINESS

Building materials group CRH has agreed to sell its building materials distribution arm Europe Distribution business to private equity funds managed by Blackstone for €1.64bn (£1.4bn).

Headquartered in the Netherlands, CRH Europe Distribution business (CRH ED) comprises entire General Builders Merchants business in Europe, including its Sanitary Heating and Plumbing business.

CRH ED is engaged in supplying building materials to builders, specialist contractors and DIY customers.

CRH said in a statement: “The Group’s strategy of actively managing its portfolio for higher growth, more sustainable returns and efficiently allocating capital to maximise shareholder value has resulted in its decision to divest of the Business at an attractive valuation.”

The divestment, which follows a comprehensive strategic review of the Business over the last several months, is a part of CRH’s effort to maximise value for shareholders and create a simpler and more focused business.

CRH CEO Albert Manifold 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 focused Group going forward.

“We wish our colleagues in Europe Distribution every success as they enter this new phase of their development.”

The proceeds from the sale will be used by CRH for general corporate purposes, acquisitions and capital returns to shareholders through ongoing share buyback programme.

Subject to the customary social procedures and approval by the relevant antitrust authorities, the deal is scheduled to be completed in the fourth quarter of 2019.

Blackstone private equity European head Lionel Assant said: “We are delighted to invest in CRH ED. With its leading market position and strong management team it is well positioned to continue growing both organically and through M&A.”

Blackstone senior managing director Juergen Pinker said: “We are pleased to undertake this transaction and to back CRH ED in the next stage of its development, as we look to capitalize on its success.”

Image: CRH signed deal to sell Europe Distribution business for £1.4bn. Photo: courtesy of rawpixel from Pixabay.

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