CRH to divest European Distribution business to Blackstone

CRH plc has agreed to divest its European Distribution business to private equity funds managed by Blackstone for EUR1.64bn, subject to regulatory approval.

The sale includes CRH's entire General Builders Merchant business in Europe, including its sanitary heating and plumbing business. It supplies building materials to professional builders, specialists contractors and DIY customers through a network of local and regional brands across six countries in western Europe.

The divestment follows a comprehensive strategic review of CRH's business over the last few months to create a more focussed business. The proceeds from the divestment will be used for general corporate purposes, value creating acquisitions and capital returns to shareholders through the ongoing share buyback programme.

Albert Manifold, CRH executive, commented on the significance of the deal: "The transaction announced today demonstrates the continued execution of CRH's strategy of creating value for our shareholders through active profile management, the efficient allocation of capital and creating a simpler and more focussed Group going forward. We wish our colleagues in Europe Distribution every success as they enter this new phase of their development."