CRH to sell off European lime operations in €1 billion deal

BUILDING materials giant CRH has reached an agreement to sell its European lime operations to SigmaRoc in a deal worth €1bn. 

It arrives as the Belgard Castle headquartered group reports an increase in both sales and profits in the first nine months of the year.

The group’s European lime business has 16 operating locations across Ireland, the UK, Germany, Czech Republic and Poland.

CRH reported that the business generated revenues of around €559m last year, as well as earnings before interest, tax, depreciation and amortisation (Ebitda) of €125m.

SigmaRoc is a lime and industrial limestone group which targets quarried materials assets in the UK and Northern Europe.

The sale, which is subject to regulatory approval, is structured in three phases.

The first stage is expected to close early next year and will include lime operations in Ireland, Germany and Czech Republic.

The remaining phases, which will consist of UK and Polish operations, are expected to complete at some stage later next year.

“The decision to divest at an attractive valuation follows a comprehensive review of the business and demonstrates CRH’s active approach to portfolio management,” chief executive Albert Manifold said.

“The proceeds from the divestment will provide us with significant additional capital allocation opportunities to deliver further growth and value creation for our shareholders.”

Earlier this week, the building materials giant also announced the acquisition of €1.9bn worth of materials assets in Texas.

This portfolio includes cement and ready-mixed concrete assets, which will be purchased from US firm Martin Marietta Materials.

It is expected to generate pro-forma 2023 Ebitda of around €155m. The deal is subject to regulatory approval and is expected to complete in the first half of 2024.