Building Materials Company CRH Divests European Lime For $1.1B

CRH PLC CRH agreed to divest its lime operations in Europe to SigmaRoc plc for around $1.1 billion.

The business comprises CRH's 16 operating locations across Poland, Ireland, the U.K., Germany, and the Czech Republic, which generated sales of about $610 million and EBITDA of around $137 million in 2022 on a combined basis.

The transaction is subject to customary conditions and regulatory approvals and is structured in three phases of completion.

The first phase is expected to complete in early 2024, comprising the lime operations in Germany, Czech Republic and Ireland, while the rest phases, including operations in the U.K. and Poland, are expected to finish in 2024.

Albert Manifold, Chief Executive of CRH, said, "The decision to divest at an attractive valuation follows a comprehensive review of the business and demonstrates CRH's active approach to portfolio management. The proceeds from the divestment will provide us with significant additional capital allocation opportunities to deliver further growth and value creation for our shareholders."

Yesterday, CRH inked a deal with building materials manufacturer Martin Marietta Materials Inc MLM to acquire its South Texas cement business and related concrete operations for $2.1 billion in cash.

Also, the company reported sales of $26.3 billion (+8% Y/Y) and an EBITDA margin of 18.1% (+100bps Y/Y) for nine months ended September 30. 

Price Action: CRH shares closed higher by 4.07% at $61.13 on Tuesday.