Ash Grove which is the sixth largest cement manufacturer in North America, and the largest US-owned cement company 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.
Ash Grove Chairman, Charlie Sunderland; “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 bring Ash Grove on the next phase of its development after 135 years in operation and over a century under the stewardship of the Sunderland family.”
CRH Chief Executive, Albert Manifold; “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.”
The transaction is expected to close around the end of this year.