CRH agrees $3.5bn purchase of Ash Grove Cement

 
Caitlin Morrison
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CRH owns assets across the globe (Source: CRH)

Irish building materials group CRH has agreed to buy US cement maker Ash Grove Cement for $3.5bn (£2.6bn).

Shares in CRH jumped 4.4 per cent at the open.

Just over a month ago, CRH sold its US distribution arm for $2.63bn, with the reason that it could not "foresee becoming a market leader".

However, the FTSE 100-listed firm has also benefited from US President Donald Trump's rhetoric around ramping up infrastructure spending.

Ash Grove operates eight cement plants across as many US states, and also owns several ready-mixed concrete, aggregates and associated logistics assets across the US midwest. The group reported pre-tax profit of $215m last year, along with gross assets of $2.5bn.

"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 chief executive Albert Manifold.

"We welcome the Ash Grove team to CRH and look forward to further developing our longstanding relationship as part of one company."

Charlie Sunderland, chairman of Ash Grove's board, added: "CRH, as our largest customer, has enjoyed a close and highly productive relationship with Ash Grove for many decades. 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."

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