Business, Earthmoving News

CRH to acquire Adbri in Australia

CRH and Barro Group have entered into an agreement to purchase Australian building material business Adbri

Adbri, formerly known as Adelaide Brighton, has received a buyout proposal from global building material supplier CRH and Australian concrete and quarry product supplier Barro.

Barro is currently a 43 per cent shareholder of Adbri. CRH currently has a 4.6 per cent interest in the company via a cash settled derivative and would acquire the remaining approximately 57 per cent of Adbri’s shares not owned by Barro with the intention to delist Adbri from the ASX.

The Partners’ Proposal is subject to Adbri shareholder approval and legal requirements, including relevant regulatory approvals.

“We are very pleased to announce this potential acquisition of Adbri in partnership with the Barro family,” CRH chief executive Albert Manifold says.

“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.”

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