CRH plc announces completion of Lafarge-Holcim transaction
On 2 February 2015, CRH plc announced that it had reached agreement to acquirecertain assets from Lafarge S.A. and Holcim Ltd for a total Enterprise Value of €6.5bn.CRH is pleased to announce that the transaction is now complete, with the exception ofthe Philippines which is expected to close in Q3 2015. The transaction more thandoubles CRH's cement production volumes and will further expand its aggregates andreadymixed concrete portfolios. As a result, CRH becomes the third largest buildingmaterials player globally and the world No. 2 in aggregates. The acquired assetsgenerated revenue of €5.1bn and EBITDA of €752 million in 2014. CRH has identifiedannual net synergies of €90 million by year three.
Assets acquired include:
- the largest cement producer in Central Canada; an excellent fit with CRH'sexisting Americas Materials business, further strengthening the Group's position inthis key North American region
- major cement and aggregates operations in Western Europe's three largestmarkets; Great Britain, France and Germany
- leading cement and aggregates companies in the growth regions of Central and Eastern Europe (CEE), creating a strong regional cluster in which CRH becomesthe number one heavyside building materials company
- and entry positions of scale in two emerging economic regions; Brazil and thePhilippines (completion expected in Q3 2015).
CRH will integrate the newly acquired assets across over 685 locations in 11 countrieswithin a reporting structure directly overseen by the Chief Executive and a senioroperational team. Employee numbers at CRH will increase by 15,000 people to 91,000.
Albert Manifold, Chief Executive said: "Today we extend a warm welcome to 15,000 newcolleagues joining CRH. With their expertise and talent on board, combined with the strength of our existing employee base, CRH is a step closer to achieving our aim ofbecoming the world's leading building materials company. The businesses we areacquiring, which represent an excellent geographic fit with CRH's existing operations, areall strong performers in their respective areas. The integration of these high qualityassets, which we have acquired at an attractive valuation and at the right point of thecycle, will strengthen our presence in a number of key markets as well as providing newplatforms for strategic growth. The additional scale will help us to improve efficiency,speed up innovation and provide an even better service to our customers."
CRH shareholders approved this transaction in March 2015 and clearance from theEuropean Commission was received in April.