(Alliance News) - CRH PLC on Monday said it has agreed to buy Barrette Outdoor Living Inc, an Ohio-based maker of residential fencing, for an enterprise value of USD1.9 billion.
CRH is buying Barrette from TorQuest Partners and Caisse de depot et placement du Quebec. It is paying USD1.85 billion in cash, plus taking on USD40 million in capitalised lease liabilities.
Barrette, which will be added to CRH's Architectural Products business, reported USD79 million in pretax profit in the financial year that ended January 1. CRH said the price it is paying represent a multiple of 10 times earnings before interest, tax, depreciation and amortisation.
Barrette is based in Middleburg Heights, Ohio and operates from 14 locations in total. It was founded in 1975 and now distributes its fencing, railing and outdoor decking for homes in the majority of US states and several regions in Canada.
Dublin-based CRH noted the acquisition follows the recent divestment of its Building Envelope business and represents a reallocation of capital.
CRH last month completed the Building Envelope sale to KPS Capital Partners LP at an enterprise value of USD3.8 billion, having agreed the deal in February. The sale price included USD3.45 billion in cash, plus the transfer of lease liabilities of USD350 million.
"Our Architectural Products business has been one of our fastest growing businesses in recent years, and the acquisition of Barrette complements and enhances our existing offering of sustainable outdoor living solutions in North America" said CRH Chief Executive Albert Manifold.
CRH shares were up 2.9% at 3,327.50 pence early Monday, outperforming the wider FTSE 100 index, which was up 1.3%.
By Tom Waite; thomaslwaite@alliancenews.com
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