Friday 24 May 2019

CRH shares up on sale to seal Ashgrove deal

CRH chief executive Albert Manifold and chairman Nicky Hartery
CRH chief executive Albert Manifold and chairman Nicky Hartery
Ellie Donnelly

Ellie Donnelly

CRH has completed the sale of cement and ready-mix assets to Grupo Cementos de Chihuahua (GCC) following its acquisition of Ash Grove.

The move comes less than a month after CRH received regulatory approval from the US Federal Trade Commission to acquire cement manufacturer Ash Grove for $3.5bn (€3bn) in a deal first announced last September.

Ireland's biggest company sold the Trident cement plant in the US state of Montana to GCC for $107.5m (€92m).

As part of the transaction with GCC, CRH acquired most of the ready-mix plants and transportation assets belonging to GCC in Oklahoma and northwest Arkansas for $118.5m (€101m). GCC will continue to own and operate four ready-mix plants in the Fort Smith, Arkansas area and own an office building in Tulsa, Oklahoma, which it will lease to CRH.

The purchase and sale amounts have been paid in full but are subject to final inventory valuation adjustments, which are expected to be completed within 90 days.

Yesterday shares in CRH were up almost 2pc to €30.69 in afternoon trading on the Irish Stock Exchange. Last year CRH recorded earnings of €3.3bn, a 3pc increase on the same period in 2016 on a like-for-like basis.

The group'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 of directors.

Irish Independent

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