CRH considering sale of European distribution arm as part of $8.2bn capital raising plan

By Tom Wadlow
CRH, one of the world’s largest providers of construction materials, may sell off its European distribution business, according t...

CRH, one of the world’s largest providers of construction materials, may sell off its European distribution business, according to reports.

The Irish company, which turns over around $31.5bn, is looking to raise €7bn ($8.2bn) in financial capacity over the next four years, which it says will provide “significant opportunities for further value creation for our shareholders”.

“We have initiated a strategic review of our Europe Distribution business, focused on improving the margins and returns of the business, as well as exploring other strategic options,” the company said in a statement.

See also:

The business unit in question, which supplies materials to builders, contractors and plumbers, accounts for 16% of overall sales but only accounts for 9% of earnings before interest, tax, depreciation and amortisation (EBITDA), suggesting efficiencies can be made.

However, the Irish Times says market sources suggest a sale of $2.8bn is possible, with potential buyers being Kingfisher and Saint-Gobain.  

CRH has already sold its US distribution business (Allied Building Products) in recent months to Beacon Roofing Supply for $2.6bn.

CRH also said it will establish a new global Building Products division from the beginning of 2019, bringing together its Europe Lightside, Europe Distribution and Americas Products divisions. Keith Haas, currently President of the Americas Products division, will assume leadership of the new consolidated unit.

Share

Featured Articles

PwC Examines Digital Trends in Operations for 2024

PwC’s Digital Trends in Operations Survey for 2024 demonstrates a significant proportion of firms are struggling to achieve their desired outcomes

P&SC LIVE New York 2024 Virutal - SAVE THE DATE

Don’t miss out on your chance to attend Procurement & Supply Chain LIVE New York in 2024 Virtually, 5-6 June

Charities & NGOs Submit to The Global P&SC Awards for FREE

The Global Procurement & Supply Chain Awards hosted at P&SC LIVE London Sept 2024 welcomes charities and NGOs to submit for FREE

Procurement & Supply Chain LIVE: 2024 Dates to Remember

Digital Supply Chain

Gartner Unveils Top Supply Chain Technology Trends for 2024

Technology

What the Latest CSDDD Milestone Means for Supply Chains

Sustainability