CRH To Sell Its European Distribution Business
The CRH Europe Distribution (CRH ED) business is to be sold to private equity funds managed by Blackstone for an enterprise value of €1.64bn (£1.48bn), payable in cash. The transaction is subject to regulatory approval.
The deal covers CRH’s entire general builders’ merchants business in Europe, including its sanitary heating and plumbing business. It supplies building materials to professional builders, specialist contractors and DIY customers through a network of local and regional brands across six countries in Western Europe. The business, which is based in the Netherlands, also operates in Germany, Switzerland, Austria, Belgium and France.
In 2018 CRH ED generated earnings before interest, tax, depreciation and amortisation (EBITDA) of €155m on sales of €3.7m; the profit before tax for the year was €124m and gross assets at year-end amounted to €1.9bn.
This sale follows a strategic review of the business, which considered all options to maximise value for shareholders. It concludes the exit from distribution businesses across the group, creating what CRH describes as a simpler and more focused business.
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