CHR sells European distribution business to Blackstone
London, Munich, Dusseldorf — ARQIS has advised FTSE-100 listed CRH plc. (“CRH”) on the sale of its European distribution business to a private equity fund managed by Blackstone for an enterprise value of €1.64 billion. Lead legal counsel for CRH worldwide was Slaughter and May, working with Chris Roberts, CRH’s general counsel, and Damianos Vainas, deputy general counsel. ARQIS advised on the German portion of the acquisition. The transaction is subject to regulatory approval.
“The transaction demonstrates the continued execution of CRH’s strategy to create value for our shareholders through active portfolio management, efficient capital allocation and the creation of a simpler and more focused group for the future. We wish our colleagues at Europe Distribution every success as they enter this new phase of their development,” said Albert Manifold, Chief Executive of CRH.
The divestment includes CRH’s entire General Builders Merchants business in Europe, including the plumbing heating and sanitation business. The sale followed a comprehensive strategic review of the business in recent months, which considered all options to maximize value for shareholders. The proceeds from the divestment will be used for general corporate purposes to make acquisitions as part of our ongoing share repurchase program and to provide returns of capital to shareholders.
CRH is a leading global diversified building materials group with around 85,000 employees at approximately 3,600 sites in 32 countries. With a market capitalization of approximately €23 billion (April 2018), CRH is the largest building materials company in North America and the second largest in the world. The Group holds various market-leading positions in Europe and strategic positions in the emerging economic regions of Asia and South America.
The ARQIS team around Jörn-Christian Schulze has been advising CRH in various transactions in Germany for many years.
Advisors to CRH: ARQIS Rechtsanwälte (Düsseldorf, Munich)
Dr. Jörn-Christian Schulze, Dr. Christof Alexander Schneider (both Lead; Corporate/M&A); Dr. Andrea Panzer-Heemeier (Labor Law), Dr. Christof Alexander Schneider, Johannes Landry (both Corporate/M&A), Christian Wegener (Tax Law), Dr. Ulrich Lienhard (Real Estate Law), Marcus Nothhelfer (IP/Compliance), Dr. Thomas Görgemanns (Corporate/M&A); Associates: Nima Hanifi-Atashgah, Thomas Chwalek, Malte Griepenburg (all Corporate/M&A), Jennifer Huschauer (Real Estate), Dr. Hendrik von Mellenthin (Labor Law), Dr. Liliia Sagun, Carina Grahs (both Legal Support Specialists).