CRH disposal to earn €21m

CRH has reached agreement to sell its Premier Periclase subsidiary to Austrian company RHI for €21 million.

The disposal of the Drogheda, Co Louth-based business is being seen as a further boost to the building materials giant’s financial firepower.

CRH has spent more than €380m on acquisitions and investments so far this year and recently said that it could “comfortably” spend between €1.5 billion and €2bn on acquisitions over the next 12 months without stretching its balance sheet or putting pressure on its credit rating.

RHI is a publicly-quoted Austrian supplier of refractory material — materials that retain their full strength at extreme temperatures and which are used for lining incinerators, reactors and kilns. It is set to pump additional investment into the Drogheda headquarters of Premier Periclase, which employs 115 people.

The two companies have had a 30-year trading relationship. Premier Periclase is RHI’s largest single customer.

From CRH’s point of view, this sale adds to its disposal proceeds of €392m already received this year and — according to Robert Eason of Goodbody Stockbrokers — reflects the group’s ongoing review of its portfolio of assets.

“Such disposal proceeds further strengthen CRH’s balance-sheet position versus its peer group,” Mr Eason commented yesterday.

On a poor day’s trading for the ISEQ yesterday, CRH was one of the few climbers — gaining 2.19%, or 26c, to close the day at €11.90.