September 22, 2017
On September 21, 2017, CRH plc announced an agreement to acquire Ash Grove Cement Co. for $3.5 billion. The transaction, which is expected to close at the end of 2017, is subject to Ash Grove shareholder and regulatory approvals and will be financed through existing financial resources.
Ash Grove Cement, which reported a gross profit of $215 million and gross assets of $2.5 billion for 2016, operates eight cement plants in eight states, combined with extensive ready-mixed concrete, aggregates, and associated logistics assets in the midwest.
“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,” said CRH Chief Executive Albert Manifold in a press release. “We welcome the Ash Grove team to CRH and look forward to further developing our longstanding relationship as part of one company.”
“CRH, as our largest customer, has enjoyed a close and highly productive relationship with Ash Grove for many decades,” said Ash Grove Cement Chairman of the Board Charlie Sunderland. “The Board of Directors believes that 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.”