CRH 'seeks sale of Oldcastle unit in US for €2.7bn'

A financial analyst expects there to be “good interest” from buyout firms and trade buyers

CRH chief executive Albert Manifold has made several bolt-on acquisitions this year, including the purchase of Hancock Concrete Products to expand its concrete pipe business in the US Midwest.

CRH, the world’s second-biggest building material maker by market value, is planning a sale of its Oldcastle Building Envelope unit that could fetch more than $3bn (€2.7bn), people with knowledge of the matter said.

The company is working with advisers and recently started reaching out to potential buyers, said the sources. The US-based unit is likely to attract interest from private equity firms, according to the people.

“We would very much like such a deal, as it would refocus the group around the heavy side and related products,” Stifel Financial analyst Tobias Woerner said in a research note. There should be “good interest” from buyout firms and trade buyers, and one option would be to merge the business with US peer Apogee Enterprises, he wrote.

Oldcastle Building generates around $300m in annual earnings before interest, taxes, depreciation, and amortisation, the sources said. The unit makes glass building products for projects ranging from storefronts and building entrances to shower enclosures and skylights.

CRH chief executive Albert Manifold has made several bolt-on acquisitions this year, including the purchase of Hancock Concrete Products to expand its concrete pipe business in the US Midwest. CRH shares gained 3% in Dublin trade on Tuesday, valuing the company at €35.2bn.  

Bloomberg