CRH partners with Barro Group to acquire Adbri

18th Dec 2023 08:01

(Sharecast News) - Building materials businesses CRH and Barro Group have partnered together to potentially acquire Australian cement manufacturing company Adbri.

CRH revealed on Monday that the proposed partners had submitted a non-binding offer to acquire Adbri for a cash price of AUD $3.20 (£1.70) per share, giving the company an equity valuation of AUD $2.1bn (£1.11bn).

Under the proposal, CRH will partner with Barro, an approximately 43% shareholder in Adbri. CRH currently has a 4.6% stake in the company via a cash-settled derivative and would acquire the remaining approximately 57% of Adbri's shares not owned by Barro with the intention to delist it from the Australian Stock Exchange.

Adbri recently announced that its 2023 underlying earnings were expected to be in a range of AUD $310.0m-315.0m (£164.0m-167.0m) and the offer represents a multiple of approximately 9.0x enterprise value to expected 2023 underlying EBITDA.

As of 0915 GMT, CRH shares were down 0.75% at 5,264.0p.

Reporting by Iain Gilbert at Sharecast.com