CRH buying Ash Grove for $3.5 billion

CRH plc reached an agreement to acquire Ash Grove Cement Co., the family-owned cement manufacturer headquartered in Overland Park, Kansas, for $3.5 billion.

The proposed transaction is subject to Ash Grove shareholder and regulatory approvals and will be financed through existing financial resources. The transaction is expected to close around the end of 2017.

“Ash Grove is an excellent addition to CRH’s portfolio of businesses across North America as we seek to deploy our capital into high-quality businesses that enhance our global asset base and provide opportunities to create shareholder value,” says Albert Manifold, chief executive of CRH. “We welcome the Ash Grove team to CRH and look forward to further developing our longstanding relationship as part of one company.”

In addition to cement manufacturing facilities, the company operates 52 ready-mixed concrete plants, 25 sand and gravel plants, 20 limestone quarries and nine packaged products plants.

“CRH, as our largest customer, has enjoyed a close and highly productive relationship with Ash Grove for many decades,” says Charlie Sunderland, chairman of the board at Ash Grove. “The board of directors believes CRH will be able to bring Ash Grove on the next phase of its development after 135 years in operation and over a century under the stewardship of the Sunderland family.”

Last year, Ash Grove reported profit before tax of $215 million and gross assets of $2.5 billion. Also in 2016, Ash Grove shipped 8.2 million tons of cement from eight cement plants.