CRH completes disposal of Americas Distribution Division
CRH has confirmed that it has completed the disposal of its Americas Distribution Division to Beacon Roofing for a total cash consideration of US$2.63bn (€2.18bn).
Ireland’s biggest company first announced that it would be disposing of the distribution division in August last year.
The sale price represents an exit multiple of around 16 times the financial year 2016 reported earnings before interest, taxation, depreciation, and amortisation for the business, according to Davy analysts.
Proceeds from the sale will be used to part fund CRH’s acquisition activity in 2017, which included acquiring Ash Grove Cement, Suwannee and Fels for a combined €4.2bn.
These acquired businesses will provide the group with a top-five position in cement in the US, while also strengthening its leading market position in lime in Europe.
Overall last year CRH engaged in over 27 acquisitions or investment transactions.
In November CRH said that it expects its profits for 2016 to hit a record €3.2bn as it benefits from underlying growth in the Americas and solid momentum in Europe.
Its sales in the first nine months of 2017 hit €20.7bn, up 2pc on the first nine months of 2016.