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CRH PLC said Monday it is planning to sell its Building Envelope business for an enterprise value of USD3.8 billion.
Shares in the FTSE 100-listed building materials firm were down 2.8% in London on Monday morning at 3,280.00 pence each.
Earlier on Monday, Dublin-based CRH had confirmed media reports it was in conversation to sell the unit. A half hour later, the company announced it had come to an agreement with KPS Capital Partners LP to offload the business.
The deal includes USD3.45 billion in cash and a transfer of lease liabilities of USD350 million.
"The decision to divest at an attractive valuation follows a comprehensive review of the business and demonstrates CRH's active approach to portfolio management, the efficient allocation of capital and the creation of a simpler and more focused group," CRH said.
The proceeds, CRH said, will go towards its capital allocation resources, which will be focused on "value-enhancing capital expenditure, value-accretive acquisitions and cash returns to shareholders."
CRH said the unit - which provides architectural glass, storefront systems, architectural glazing systems and related hardware to customers primarily in North America - recorded pretax profit of USD210 million in 2020, while all of CRH recorded USD1.66 billion.
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