CRH Plc (CRH) is reportedly selling its clay and cement business to a private US equity firm, Bain Capital, for over $600 million, of which $460 million is expected to be paid to CRH in cash.
CRH Plc, an Ireland-based building material company, is one of the oldest brick makers in the world.
Bain Capital already has a reasonable presence in the UK; it has substantial holdings in private-security company, Securitas Direct, and food-services firm, Brakes. It is widely known that former Republican US presidential candidate, Mitt Romney, is one of the founders of Bain Capital.
CRH is looking to raise funds to acquire concrete-based assets from Lafarage SA (LG) and Holcim Ltd (HCMLY), for about $1.9 billion.
Bain Capital manages global assets worth $80 billion. Earlier this year, Bain Capital was looking to acquire both Lafarage SA and Holcim Ltd but failed to strike a deal. Many analysts believe that Bain Capital’s move to acquire CRH’s clay and cement division will bode well for the company as global property markets are picking up while oil prices are declining.
This deal is expected to be realized by the mid of next year.