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Proposed acquisition of certain assets being disposed by Lafarge S.A. and Holcim Ltd

02 February 2015

CRH plc announces that it has entered into a binding commitment to acquire certain assets (hereafter referred to as “NewCo” or the “Business” from Lafarge S.A. and Holcim Ltd for an Enterprise Value of €6.5bn.

Key highlights

  • Enterprise Value of €6.5bn
  • Funded by €2.0bn cash from balance sheet, new debt and a 9.99% equity placing
  • NewCo 2014E* EBITDA of €752 million
  • €90m net synergies run rate by year three
  • Acquisition of high quality assets across four regional platforms with leading market positions
  • On completion, CRH will be the global #3 building materials player
  • ROIC in-line with CRH's WACC in first full year of ownership
  • c.25% EPS accretive in first full year of ownership
  • Pro-forma 2014E* net debt / EBITDA expected to be 3.2x, to be reduced by disposals arising from previously announced portfolio review
  • Completion expected mid-2015
  • CRH 2014 EBITDA guidance confirmed to be not less than €1.625bn

* 2014E is used throughout this announcement to indicate numbers which are approximate pending audit finalisation

Commenting on these developments, Albert Manifold, CRH Chief Executive, said:

This transaction represents a significant value creation opportunity for CRH. We are acquiring a quality portfolio of assets, which complement our existing positions, at an attractive valuation and at the right point of the cycle. The acquisition strengthens our presence in important markets across North America, Western, Central and Eastern Europe as well as providing new platforms for growth in emerging markets. The assets will integrate well into existing CRH networks benefiting from our strong business-building capabilities while providing an important platform for future development opportunities. We have maintained our disciplined investment approach through our continued focus on capital efficiency and remain focused on bringing returns back to peak during this cycle.

To view the announcement and placing details in full, please see supporting PDF documents below:

Acquisition Announcement
Placing Announcement
Acquisition Presentation
Result of Placing

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