a1077x
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A - 16 OR 15D - 16 OF
THE SECURITIES EXCHANGE ACT OF 1934
18 December 2023
Commission
File No. 001-32846
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CRH public limited company
(Translation of registrant's name into English)
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Belgard Castle, Clondalkin,
Dublin 22, Ireland.
(Address of principal executive offices)
____________________________
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F:
Form
20-F X Form
40-F___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by
Regulation
S-T Rule 101(b)(1):_________
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by
Regulation
S-T Rule 101(b)(7):________
Enclosure:
CRH
proposal to acquire Adbri in Australia
Press Release
CRH
proposal to acquire Adbri in Australia
CRH
plc, the leading provider of building materials solutions, together
with the Barro Group ("Barro" and together with CRH the "Partners")
have entered into an agreement with Adbri Ltd ("Adbri" or the
"Company") in relation to a potential transaction to acquire Adbri
that is recommended by the Independent Board Committee (IBC) of
Adbri (the "Proposal").
Adbri,
formerly known as Adelaide Brighton, is a leading building
materials business in Australia, listed on the Australian
Securities Exchange (ASX). The Partners have submitted a
non-binding offer (the "Offer") to acquire 100% of the ordinary
shares of the Company for a cash price of A$3.20 per share. Adbri
recently announced that its 2023 underlying EBITDA is expected to
be in a range of A$310 - A$315 million and the Offer represents a
multiple of approximately 9x enterprise value to expected 2023
underlying EBITDA.
Under
the Proposal, CRH would partner with Barro, an Australian
family-owned business and approximately 43% shareholder of Adbri.
CRH currently has a 4.6% interest 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
Adbri from the ASX. The Partners' Proposal is non-binding and
subject to satisfactory completion of due diligence, entry into
binding transaction documentation, Adbri shareholder approval
through a scheme of arrangement and customary legal requirements,
including relevant regulatory approvals.
As
separately announced by Adbri today, the Adbri IBC has agreed to
provide CRH exclusive due diligence access to progress the Proposal
and intends to recommend that Adbri shareholders vote in favour of
the proposed transaction, subject to entering into a binding scheme
implementation deed and other customary conditions.
The
agreed cash consideration of A$3.20 per share values Adbri at an
equity valuation of A$2.1 billion (US$1.4 billion) on a 100% basis
and values the approximately 53% of issued share capital that the
Partners do not currently have an interest in and which CRH has
agreed to acquire at A$1.1 billion (US$0.75 billion).
Albert
Manifold, Chief Executive of CRH, said: "We are very pleased to announce this
potential acquisition of Adbri in partnership with the Barro
family. We have held a long-term interest in the Australian
construction materials market, which has attractive attributes
including stable market dynamics and positive growth prospects,
similar in nature to the Southern United States and Central and
Eastern Europe where we have a significant
presence.
Adbri is an attractive business with quality assets that complement
our core competencies in cement, concrete and aggregates. With its
leading market positions in Australia, we are delighted that this
opportunity has presented itself to us. It is the next logical step
for CRH to expand our existing presence in Australia, where we have
been operating for 15 years.
This acquisition would strongly complement our existing Australian
business, creating additional opportunities for growth and
development. We look forward to working with the Barro family over
the coming years to enhance the long-term performance of the
business, leveraging our scale, industry knowledge and technical
expertise to improve long-term growth and operating performance and
drive value to achieve the true potential of the
business."
Contact CRH at +353 1 404 1000
Albert Manifold
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Chief Executive
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Jim
Mintern
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Chief Financial Officer
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Frank
Heisterkamp
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Director of Capital Markets & ESG
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Tom
Holmes
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Head of Investor Relations
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About CRH
CRH
(NYSE: CRH, LSE: CRH) is the leading provider of building materials
solutions that build, connect and improve our world. Employing
c.75,800 people at c.3,160 operating locations in 29 countries, CRH
has market leadership positions in both North America and Europe.
As the essential partner for road and critical utility
infrastructure, commercial building projects and outdoor living
solutions, CRH's unique offering of materials, products and
value-added services helps to deliver a more resilient and
sustainable built environment. The company is ranked among sector
leaders by Environmental, Social and Governance (ESG) rating
agencies. A Fortune 500 company, CRH's shares are listed on the
NYSE and LSE.
Registered Office: No 12965. Registered Office: 42 Fitzwilliam
Square, Dublin 2, R02 R279, Ireland
Forward-Looking Statements
This
document contains statements that are, or may be deemed to be,
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995.
These
forward-looking statements may generally, but not always, be
identified by the use of words such as "will", "believe",
"continues", "is expected to", "intends to" or similar expressions.
These forward-looking statements include all matters that are not
historical facts or matters of fact at the date of this
document.
This
document contains statements that are, or may be deemed to be,
forward-looking statements with respect to the business and future
performance of CRH and certain of the plans and objectives of CRH,
including but not limited to statements regarding plans and
expectations in connection with the Proposal and CRH's partnership
with Barro; expectations for Adbri's 2023 underlying EBITDA and the
multiple of enterprise value reflected by the Proposal, plans and
expectations related to completion of the transaction, including
the delisting of Adbri from the ASX; and plans and expectations
regarding the benefits of the proposed transaction and CRH's
presence in Australia.
Forward-looking
statements are subject to risks, uncertainties and other factors
because they relate to events and depend on circumstances that may
or may not occur in the future and/or are beyond CRH's control or
precise estimate.
Such
risks, uncertainties and other factors include, but are not limited
to, economic and financial conditions, including market turbulence,
high interest rates, inflation, price volatility and/or labor and
materials shortages in various countries and regions where we
operate; the pace of growth in the sectors in which we operate;
demand for infrastructure, residential and non-residential
construction and our products in our geographic markets; increased
competition and its impact on prices; and increases in energy
and/or raw materials costs. There are other important factors,
risks and uncertainties that could cause actual outcomes and
results to be materially different, including risks and
uncertainties relating to CRH described under "Principal Risks and
Uncertainties" in CRH's Report on Form 6-K regarding the results
for the six-month period ended 30 June 2023, as filed with the US
Securities and Exchange Commission (the "SEC"), as well as
"Principal Risks and Uncertainties (Risk Factors)" in the Company's
2022 Annual Report on Form 20-F as filed with the SEC.
You
are cautioned not to place undue reliance on any forward-looking
statements. These forward-looking statements are made as of the
date of this document. CRH expressly disclaims any obligation or
undertaking to publicly update or revise these forward-looking
statements other than as required by applicable law.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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CRH public limited company
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(Registrant)
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Date 18
December 2023
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By:___/s/Neil
Colgan___
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N.Colgan
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Company Secretary
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