Reported Earlier, CRH And Barro Group Set To Acquire Building Materials Leader Adbri For A$2.1B

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CRH plc, the leading provider of building materials solutions, together with the Barro Group ("Barro" and together with CRH the "Partners") have entered into an agreement with Adbri Ltd ("Adbri" or the "Company") in relation to a potential transaction to acquire Adbri that is recommended by the Independent Board Committee (IBC) of Adbri (the "Proposal").
The Partners have submitted a non-binding offer (the "Offer") to acquire 100% of the ordinary shares of the Company for a cash price of A$3.20 per share. Adbri recently announced that its 2023 underlying EBITDA is expected to be in a range of A$310 - A$315 million and the Offer represents a multiple of approximately 9x enterprise value to expected 2023 underlying EBITDA.
Under the Proposal, CRH would partner with Barro, an Australian family-owned business and approximately 43% shareholder of Adbri. CRH currently has a 4.6% interest in the Company via a cash settled derivative and would acquire the remaining approximately 57% of Adbri's shares not owned by Barro with the intention to delist Adbri from the ASX.
The agreed cash consideration of A$3.20 per share values Adbri at an equity valuation of A$2.1 billion (US$1.4 billion) on a 100% basis and values the approximately 53% of issued share capital that the Partners do not currently have an interest in and which CRH has agreed to acquire at A$1.1 billion (US$0.75 billion).

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