Mike Karriker | Aug 04, 2015
Holcim (Canada) Inc. has formally announced its new company name, CRH Canada Group Inc., under its new owner CRH plc, the international building materials group. CRH announced on 2 February 2015 that it had reached agreement to acquire certain assets from Lafarge S.A. and Holcim Limited, for a total consideration of €6.5 billion. CRH confirmed today that the transaction has been completed, with the exception of the Philippines which is expected to close in Q3 2015. The global transaction more than doubles CRH’s cement production volumes and will expand its aggregates and ready-mixed concrete portfolios. As a result, CRH becomes the third largest building materials supplier globally and the world’s No.2 in aggregates. The assets generated revenue of €5.1bn and EBITDA of €752 million in 2014. CRH has identified annual net synergies of €90 million by year three.
CRH Canada is the largest cement producer in Central Canada; an excellent fit with CRH’s existing US Materials business and which strengthens CRH’s position in this key North American region. The company will now operate its cement business and its corporate identity under the CRH name, demonstrating its important role within a global group that has clear opportunities to share knowledge, leverage synergies and drive efficiencies. CRH Canada’s aggregates, ready mix concrete and construction divisions will continue to operate under the Dufferin brand in Ontario and Demix brand in Quebec.
CRH Canada joins its new parent company along with several other assets acquired by CRH including:
- major cement and aggregates operations in Western Europe’s three biggest markets; Great Britain, France and Germany
- leading cement and aggregates companies in the growth regions of Central and Eastern Europe (CEE); to create a strong regional cluster in which CRH becomes the number one heavyside building materials company
- and entry positions of scale in two emerging economic regions; Brazil and the Philippines (subject to completion of transaction).
CRH will integrate the newly acquired assets across over 685 locations in 11 countries within a reporting structure directly overseen by the Chief Executive and a senior operational team. Employee numbers at CRH will increase by 15,000 people to 91,000.
Albert Manifold, CRH Chief Executive said: “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.”
CRH shareholders approved this transaction in March 2015 and clearance from the European Commission was received in April.