CRH PLC CRH agrees $3.5bn acquisition of Ash Grove Cement
September 21 2017 - 2:31AM
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TIDMCRH
RNS Number : 3612R
CRH PLC
21 September 2017
This document contains inside information
Press Release
CRH agrees US$3.5bn acquisition of Ash Grove Cement
21 September 2017
CRH plc, the international building materials group, announces
that it has reached an agreement to acquire Ash Grove Cement
Company ("Ash Grove"), a leading US cement manufacturer
headquartered in Overland Park, Kansas, for a total consideration
of US$3.5 billion. 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.
Ash Grove operates eight cement plants across eight US states,
combined with extensive readymixed concrete, aggregates and
associated logistics assets across the US midwest.
For the year ended 31 December 2016, Ash Grove reported profit
before tax of US$215 million and gross assets of US$2.5 billion(1)
.
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."
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".
****
For further information contact CRH plc at +353 1 404 1000
Albert Manifold Chief Executive
Senan Murphy Finance Director
Frank Heisterkamp Head of Investor Relations
This document contains inside information and has been issued
pursuant to Article 2.1(b) of Commission Implementing Regulation
(EU) 2016/1055. The date and time of this statement is the same as
the date and time that it has been communicated to the media.
(1) Based on audited financial statements as of 31 December
2016. Ash Grove intends to make a special dividend of excess cash
and certain investments prior to closing.
About CRH
CRH (LSE: CRH, ISE: CRG, NYSE: CRH) is a leading global
diversified building materials group, employing c.87,000 people at
c.3,800 operating locations in 31 countries worldwide. With a
market capitalisation of c.EUR25 billion (September 2017), CRH is
the largest building materials company in North America and the
second largest worldwide. The Group has leadership positions in
Europe as well as established strategic positions in the emerging
economic regions of Asia and South America. CRH is committed to
improving the built environment through the delivery of superior
materials and products for the construction and maintenance of
infrastructure, housing and commercial projects. A Fortune 500
company, CRH is a constituent member of the FTSE 100 index, the
EURO STOXX 50 index, the ISEQ 20 and the Dow Jones Sustainability
Index (DJSI) Europe. CRH's American Depositary Shares are listed on
the NYSE. For more information visit www.crh.com
About Ash Grove
Ash Grove is a leader and pioneer in the cement industry. For
135 years, Ash Grove has provided portland and masonry cements to
construct highways, bridges, commercial and industrial complexes,
single- and multi-family homes, and other important structures
fundamental to America's economic vitality and quality of life. In
2016, Ash Grove shipped 8.2 million tons of cement from eight
cement plants and two deep-water import terminals located
throughout the midwest, Texas and western United States. In
addition to cement manufacturing facilities, the company operates
52 readymixed concrete plants, 25 sand and gravel plants, 20
limestone quarries and nine packaged products plants. Learn more at
www.ashgrove.com
Ireland Media Contact
Drury | Porter Novelli
Tel: +353 1 260 5000
UK & International Media Contact
Powerscourt
Tel: +44 207 250 1446
email: crh@powerscourt-group.com
Registered Office: No 12965. Registered Office: 42 Fitzwilliam
Square, Dublin 2, R02 R279, Ireland
This information is provided by RNS
The company news service from the London Stock Exchange
END
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September 21, 2017 02:16 ET (06:16 GMT)
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