CRH shares gained 2.4% to 3,314p in early morning trading on Monday, following the group’s reported acquisition of Barrette Outdoor Living for $1.9 billion.
The company reached an agreement with TorQuest Partners and Caisse de dépôt et placement du Québec (CDPQ) to purchase the residential fencing and railing solutions firm for approximately ten times its EBITDA pre-synergies.
CRH noted that Barrette reported a pre-tax profit of $79 million and gross assets of $1.2 billion for the year ended on 1 January 2022.
The deal is set to be financed through existing financial resources and is scheduled to close in HY2 2022, subject to regulatory approval.
The agreement follows the recent divestment of CRH’s Building Envelope business, and falls in line with the group’s strategy to create shareholder value with active portfolio management and the optimised reallocation of capital.
“Barrette is an excellent addition to CRH. Our Architectural Products business has been one of our fastest growing businesses in recent years and the acquisition of Barrette complements and enhances our existing offering of sustainable outdoor living solutions in North America,” said CRH CEO Albert Manifold.
“It also demonstrates the continued execution of our integrated solutions strategy to create further value for our customers, our business and our shareholders.”
“We welcome the Barrette team to CRH and look forward to working with them on the next phase of our growth and development.”