Sunday 23 September 2018

CRH receives regulatory approval for $3.5bn Ash Grove acquisition

Albert Manifold, CEO of CRH. Photo: Chris Ratcliffe/Bloomberg
Albert Manifold, CEO of CRH. Photo: Chris Ratcliffe/Bloomberg
Ellie Donnelly

Ellie Donnelly

CRH has received regulatory approval from the US Federal Trade Commission to acquire cement manufacturer Ash Grove.

The $3.5bn (€3bn) transaction, which was announced last September, is expected to close this month.

Ireland's biggest company financed the acquisition through existing financial resources.

For the year ended 31 December 2016, Ash Grove reported profit before tax of US$215m and gross assets of US$2.5bn.

CRH was already its largest customer.

Headquartered in Kansas, Ash Grove operates eight cement plants across eight US states.

Last year CRH recorded earnings of €3.3bn, a 3pc increase on the same period in 2016 on a like-for-like basis.

CRH's strong performance in 2017 was driven by increases in underlying demand in the Americas, and continued positive momentum in Europe, the company said in its annual results presentation.

Earlier this year CRH announced the appointment of former Bank of Ireland CEO Richie Boucher to its board.

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