International building materials group CRH plc completed its acquisition of Holcim North Danube, including Holcim Wien, Holcim Slovensko and Holcim Magyarország Kft, Ecorec, TransPlus and Pultrans, as part of a global deal for CRH to acquire certain assets from Lafarge S.A. and Holcim Ltd, for a total consideration of €6.5 bln, a press release said yesterday.
According to the press release the transaction announced yesterday marks a “major milestone for Holcim North Danube as its businesses in the Slovakia, Hungary and Austria region join the CRH Group as part of its largest ever transaction.” The press release noted that as part of CRH, the businesses will have access to the collective knowledge, best practices, innovation and skills of the wider CRH group.
“Today we extend a warm welcome to 15,000 new colleagues joining CRH. With their expertise and talent on board, combined with the strength of our existing employee base, CRH is a step closer to achieving our aim of becoming the world’s leading building materials company. The businesses we are acquiring, which represent an excellent geographic fit with CRH’s existing operations, are all strong performers in their respective areas. The integration of these high quality assets, which we have acquired at an attractive valuation and at the right point of the cycle, will strengthen our presence in a number of key markets as well as providing new platforms for strategic growth. The additional scale will help us to improve efficiency, speed up innovation and provide an even better service to our customers.” – Albert Manifold, Chief Executive, CRH plc said.
The company expects the transaction to globally double CRH’s cement production capacity and will expand its aggregates and ready-mixed concrete portfolios. As a result, CRH will be the third largest building materials player globally and the world No.2 in aggregates, the company foresees.