CRH acquires 49% of Portuguese cement company

Building materials group CRH has bought of a 49% stake in Secil, a Portuguese manufacturer of cement and ready-mixed concrete for €333m, with goodwill of €45m.

The investment is based on an agreed enterprise value of €900m for 100% of Secil.

Following the payment of a dividend by Secil to its former 100% shareholder Semapa, net debt at closing was €220m.

CRH and Semapa have also concluded an agreement under which they will have joint management control of Secil.

Liam O’Mahony, Chief Executive of CRH plc, said: "With the acquisition of a 49% stake in this €900m business, our Europe Materials Division now has a leadership position in the attractive Portuguese cement market, which has traditionally had high per capita consumption.

“This significant investment also provides development opportunities in Tunisia, where Secil is a prominent producer of cement, and in Lebanon, where Secil has an investment in an associated undertaking.”