By Ian Walker

CRH PLC is selling its European lime operations to SigmaRoc for $1.1 billion in a three-part deal, the first of which is expected to be completed early next year.

The Irish building-materials supplier said Wednesday that the sale follows a review of the business and is part of its approach to portfolio management.

The company said the first part of the sale includes operations in Germany, Czech Republic and Ireland. The remaining phases, consisting of operations in the U.K. and Poland, are expected to be completed in 2024, it said.

"The proceeds from the divestment will provide us with significant additional capital allocation opportunities to deliver further growth and value creation for our shareholders," CRH Chief Executive Albert Manifold said.

The business being sold generated sales of $610 million and earnings before interest, taxes, depreciation and amortization of $137 million in 2022.

In a separate release, SigmaRoc said it was buying the operations in deal that represented a reverse takeover under U.K. listing rules. As such, SigmaRoc's shares have been suspended from trading.

SigmaRoc plans to part-fund the deal via a share placing, which will be supported by CRH. It didn't say how many shares CRH will buy under the placing.

SigmaRoc is raising 200 million pounds ($250.8 million) via the placing of 421.05 million new ordinary shares at 47.5 pence each, with a further 10.5 million shares being issued via a retail offer to give existing shareholders the chance to buy the discounted shares.

The issue price is a 5.4% discount to SigmaRoc's closing share price of 50.2 pence on Tuesday.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

November 22, 2023 03:32 ET (08:32 GMT)

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