Ireland’s CRH to sell U.S.-based unit to KPS for $3.8 billion

DUBLIN (Reuters) -Irish building materials firm CRH Plc agreed to sell its U.S.-based unit that manufactures glass products to private equity firm KPS Capital Partners for $3.8 billion, the world’s second-largest building materials supplier said on Monday.

CRH said the decision to sell its Building Envelope business at what it described as an attractive valuation demonstrated its active approach to portfolio management, efficient allocation of capital and the creation of a simpler and more focused group.

“The proceeds from the divestment will be incorporated into the group’s capital allocation resources, focused on value-enhancing capital expenditure, value-accretive acquisitions and cash returns to shareholders,” CRH said in a statement.

In 2020, the unit generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $337 million. CRH reported full-year earnings of $4.6 billion across the group.

(Reporting by Shanima A in Bengaluru and Padraic Halpin in Dublin; Editing by Sherry Jacob-Phillips and Louise Heavens)