CRH plc has reached an agreement to buy US-based Ash Grove Cement Co for US$3.5bn. The proposed transaction is subject to Ash Grove shareholder and regulatory approvals and will be financed through existing financial resources. The transaction is expected to close around year end 2017.
Albert Manifold, Chief Executive of CRH, commented: “Ash Grove is an excellent addition to CRH’s portfolio of businesses across North America as we seek to deploy our capital into high quality businesses that enhance our global asset base and provide opportunities to create shareholder value. We welcome the Ash Grove team to CRH and look forward to further developing our longstanding relationship as part of one company.”
Ash Grove operates eight cement plants across eight US states, combined with extensive ready-mixed concrete, aggregates and associated logistics assets across the US midwest. For the year ended 31 December 2016, the company reported a pretax profit of US$215m and gross assets of US$2.5bn.
Charlie Sunderland, Chairman of the Board of Ash Grove, added: “CRH, as our largest customer, has enjoyed a close and highly productive relationship with Ash Grove for many decades. The Board of Directors believes that CRH will be able to bring Ash Grove on the next phase of its development after 135 years in operation and over a century under the stewardship of the Sunderland family”.
The transaction is expected to be completed by 2018 at the latest.
