CRH plc, the global leader in building materials solutions, has agreed terms for the acquisition of Barrette Outdoor Living, North America’s leading provider of residential decking, fencing and railing solutions.
The company said the enterprise value of the deal is $1.9 billion, representing an acquisition multiple of c.10x EBITDA pre-synergies.
Barrette Outdoor Living, established in Ohio in 1975, makes fencing, railing, decking and complementary outdoor products, with a trademarked advertising slogan that encourages customers to embrace their ‘Outside Side’.
The company has 14 locations in North America and sells through speciality retailers, home centres and lumberyards.
Barrette products are protected by over 70 patents and the company reported profit before tax of $79m in 2021 and had gross assets of $1.2 billion.
In Association with
CRH said that the net outlay of $1.85 billion (€1.73bn) will be financed from its own resources after the group divested its ‘Building Envelope’ business. The deal is expected to close in the second half of 2022.
Albert Manifold, chief executive of CRH, commented: “Barrette is an excellent addition to CRH. 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.
“It also demonstrates the continued execution of our integrated solutions strategy to create further value for our customers, our business and our shareholders.”
CRH employs c.71,000 people at c.3,200 operating locations in 28 countries. It is the largest building materials business in North America and Europe and also has regional positions in Asia.
CRH manufactures and supplies a range of integrated building materials, products and innovative solutions which can be found throughout the built environment, from major public infrastructure projects to commercial buildings and residential structures.
The plc is a constituent member of the FTSE 100 Index, the EURO STOXX 50 Index, the ISEQ 20 and the Dow Jones Sustainability Index (DJSI) Europe.
