Sources: CRH Plc, Dublin; CP staff
CRH continues to streamline its North American portfolio around cement, aggregates, concrete and asphalt production assets. The company recently announced an agreement to sell its California-based Oldcastle BuildingEnvelope business to KPS Capital Partners, a New York private equity firm. The deal includes a $3.45 billion cash payment, plus transfer of $335 million in lease liabilities.
A major architectural glass and glazing system producer for low- to high-rise commercial buildings in the U.S. and Canada, Oldcastle BuildingEnvelope reported 2020 pre-tax profit of $210 million. CRH notes that the decision to divest at an attractive valuation follows a comprehensive review of the business, and demonstrates “active portfolio management, efficient allocation of capital, and creation of a simpler and more focused Group.” Proceeds from the transaction will redound to the producer’s capital allocation pool, fueling “value-enhancing capital expenditures, value-accretive acquisitions and cash returns to shareholders.”