KPS Capital Partners to buy CRH’s Building Envelope division

CRH la-fondation-louis-vuitton

Irish building materials giant, CRH, has entered into an agreement to sell its Building Envelope business for an enterprise value of $3.8bn (€3.4bn). The division will be sold to KPS Capital Partners.

The sale embraces architectural glass, storefront systems, architectural glazing systems and related hardware to customers primarily in North America – this houses CRH’s entire Building Envelope business.  

A statement released by CRH confirms that the price being paid includes a cash consideration of $3.4bn, with a transfer of lease liabilities of $350m.

The transaction is subject to customary conditions and approvals.

CRH said: “The decision to divest at an attractive valuation follows a comprehensive review of the business and demonstrates CRH’s active approach to portfolio management, the efficient allocation of capital and the creation of a simpler and more focused group.”

In 2020, the business generated earnings of $337m, profit before tax of $210m, with gross assets at 30 June 2021 amounting to $2.5bn.

CRH will announce their full year results for 2021 on 3 March, 2022.

Sale proceeds from KPS Capital Partners will be included into the Albert Manifold-headed group’s capital allocation resources, and focused on “value-enhancing capital expenditure, value-accretive acquisitions and cash returns to shareholders.”

LSL News.