Ireland-based CRH plc, the international building materials group, has this morning reported that it has reached an agreement to acquire Ash Grove Cement Company of Kansas, USA. Total consideration is US$3.5bn, says CRH. The proposed transaction is subject to Ash Grove shareholder and regulatory approvals.
It will be financed through existing financial resources. The transaction is expected to close around year end 2017.
This is the second time in a matter of weeks that CRH has hit the headlines for its acquisition strategy. In August, it agreed to sell its Americas Distribution business to Beacon Roofing Supply for $2.63bn in cash after it had been part of the CRH Group for more than 20 years.
Construction project in Texas, courtesy of CRH
That business has traditionally executed a growth strategy based on focused acquisitions, selective greenfields and investments in private label products. But as reported here at the time, the absence of value accretive acquisitions and a lack of visibility re a route to market leadership tipped the balance in favour of a disposal.
At the same time, CRH’s Europe Heavyside business agreed to acquire Fels, a German lime and aggregates business, for €0.6bn (enterprise value).