CRH to Sell Clay and Concrete Units to Bain for $651 MillionKiel Porter and Aaron Kirchfeld
CRH Plc, an Irish building-materials company, agreed to sell clay and concrete businesses to Boston-based buyout firm Bain Capital LLC for 414 million pounds ($651 million).
The deal, which will result in a cash payment of about 295 million pounds, is expected to close in the first half of this of 2015, CRH said in a statement today. The operations generated pretax profit of 16 million pounds in 2013.
Chief Executive Officer Albert Manifold is selling peripheral businesses as he accumulates funds for acquisitions of as much as 1.5 billion euros ($1.9 billion). The Dublin-based company has previously signaled it may consider buying some cement assets being sold by Lafarge SA and Holcim Ltd., which are trying to complete a $40 billion merger.
CRH, which was formed in 1970 through the merger of two Irish companies, operates in 35 countries with about 76,000 people and had about 18 billion euros in sales, according to its website.
Bain Capital, which has about $80 billion in assets under management, has also been looking at acquiring some of the cement assets from Lafarge and Holcim, people familiar with the matter said in October. Bloomberg earlier reported the deal between CRH and Bain was nearing agreement.
CRH fell 2.6 percent to 17.85 euros.
CRH was advised by JPMorgan Chase & Co. and Linklaters.