Ash Grove Cement Co. announced that it has entered into a definitive merger agreement with CRH plc, under which CRH plc will acquire Ash Grove in a transaction valuing Ash Grove at $3.5 billion on an enterprise value basis.
The transaction has been unanimously approved by the board of directors of Ash Grove and is currently expected to close in late 2017 or early 2018, subject to stockholder approval, regulatory approval and other customary conditions.
In announcing the transaction, Charlie Sunderland, chairman of the board, said, “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 take Ash Grove to its next phase of development after 135 years in operation and over a century under the stewardship of the Sunderland family.”
Albert Manifold, chief executive of CRH, commented, "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. We welcome the Ash Grove team to CRH and look forward to further developing our longstanding relationship as part of one company."
CRH employs 87,000 people at 3,800 operating locations in 31 countries worldwide. CRH is the largest building materials company in North America. The group has leadership positions in Europe as well as established strategic positions in the emerging economic regions of Asia and South America.
Ash Grove is a leader and pioneer in the cement industry. For 135 years, Ash Grove has provided portland and masonry cements to construct highways, bridges, commercial and industrial complexes, single- and multi-family homes, and other important structures fundamental to America's economic vitality and quality of life.
In 2016, Ash Grove shipped 8.2 million tons of cement from eight cement plants and two deep-water import terminals located throughout the Midwest, Texas and western United States. In addition to cement manufacturing facilities, the company operates 52 ready mix concrete plants, 25 sand and gravel plants, 20 limestone quarries and nine packaged products plants.