CRH Proposes To Acquire Australia's Adbri In Partnership With Barro Family: Details

CRH PLC CRH, along with the Barro Group, disclosed a deal to acquire Adbri Ltd for a cash price of A$3.20 per share. 

The acquisition price values Adbri at an equity valuation of A$2.1 billion ($1.4 billion) on a 100% basis. The deal values the 53% of issued share capital that Partners Barro and CRH do not currently have an interest in and which CRH has agreed to acquire at A$1.1 billion ($0.75 billion).

Barro, an Australian family-owned business, presently has a 43% stake in Adbri, and CRH holds 4.6% interest via a cash-settled derivative. As per the deal, CRH will buy the remaining 57% of Adbri's shares not owned by Barro to delist Adbri from the ASX.

Adbri has separately disclosed that it will offer CRH exclusive due diligence access to progress the proposal and intends to recommend that Adbri shareholders vote in favor of the proposed transaction, subject to entering into a binding scheme implementation deed and other customary conditions.

Adbri (formerly known as Adelaide Brighton), an Australia-based building materials business, recently disclosed expecting 2023 underlying EBITDA of A$310 million - A$315 million, representing a multiple of approximately 9x enterprise value to expected 2023 underlying EBITDA.

The proposal is non-binding and subject to satisfactory completion of due diligence, entry into binding transaction documentation, Adbri shareholder approval through a scheme of arrangement, and customary legal requirements, including relevant regulatory approvals.

Albert Manifold, Chief Executive of CRH, stated, "We are very pleased to announce this potential acquisition of Adbri in partnership with the Barro family. We have held a long-term interest in the Australian construction materials market, which has attractive attributes including stable market dynamics and positive growth prospects, similar in nature to the Southern United States and Central and Eastern Europe where we have a significant presence." 

Last month, 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 Read: Building Materials Company CRH Divests European Lime For $1.1B

Price Action: CRH shares are trading higher by 0.06% at $66.94 premarket on the last check Monday. 

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