Building materials group CRH has announced its biggest-ever transaction - its US subsidiary Oldcastle Materials has reached agreement to purchase Ashland Paving And Construction (APAC) for $1.3bn (€1.01bn).
Goodwill arising on the transaction is estimated at approximately $450m (€349m).
This agreement follows due diligence under the terms of an exclusivity agreement with APAC’s parent company, Ashland, which was announced on June 19.
Completion of the purchase of APAC, which has received antitrust clearance, is anticipated before the end of August. CRH will finance the acquisition using debt.
CRH boss Liam O’Mahony said: "I am delighted that agreement has been reached for the purchase of APAC which represents a major milestone in the development of our Americas materials business and the largest ever transaction to be completed by CRH.
"We aim to build on this significant new platform through enhancing the materials focus of APAC’s business and through the application of the Americas materials division’s vertically integrated approach to aggregates, asphalt and highway construction."