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- South Australian cement giant Adbri (ASX:ABC) enters into a Scheme Implementation Deed with CRH ANZ (CRH), marking one of the largest takeover deals of 2024 YTD
- The deal is valued at $2.1 billion on a 100 per cent fully diluted basis
- Adbri also releases its FY23 financial results
- Absence of a dividend was attributed to the significant cost overrun on its Kwinana expansion
- Annual revenue witnessed a 13.1 per cent increase, reaching $1.92 billion
- ABC last traded at $3.14, at 12:30pm AEDT
South Australian cement giant, Adbri (ASX:ABC) has entered into a Scheme Implementation Deed with CRH ANZ (CRH) marking one of the largest takeover deals of 2024 YTD.
The deal is valued at $2.1 billion on a 100 per cent fully diluted basis and is set to reshape the landscape of the building materials industry in the region.
“The Adbri independent directors are unanimous in their view that the Scheme will provide an attractive value outcome for Independent Shareholders if implemented,” Adbri Lead Independent Director Samantha Hogg said.
CRH is an Irish construction giant in its own right owned by the larger Barro Group.
Scheme details
The acquisition involves CRH acquiring all outstanding shares in Adbri not currently owned by Barro Group and its associates.
Independent Shareholders are set to receive an offer of $3.20 per Adbri Share in cash, reflecting a 41 per cent premium to Adbri’s undisturbed closing price on December 15 2023.
CRH is an international powerhouse with its headquarters in Dublin, Ireland, boasting a strong presence in manufacturing and supplying a wide range of products to the global construction industry.
CRH’s shares are already listed on the NYSE and LSE, this deal with Adbri aligns with the company’s strategy to further solidify its presence in Australia.
Adbri’s Independent Board Committee (IBC), consisting of Independent Non-executive Directors, has unanimously recommended that Independent Shareholders vote in favour of the Scheme, underlining the committee’s confidence in the proposed deal.
Annual report
Adbri also released its FY2023 financial results.
The company’s absence of a dividend was attributed to the significant cost overrun on its Kwinana expansion.
As of 31 January 2024, $265 million has been invested into the project. It now becomes CRH’s responsibility, along with the substantial debt incurred to finance the overrun.
Despite these challenges, Adbri reported annual revenue clocking a 13.1 per cent increase, reaching $1.92 billion.
Statutory EBITDA increased by 5.2 per cent to $297.4 million, and underlying EBITDA surged 30.9 per cent vs pcp, reaching $311.0 million compared to 2022.
The net after-tax profit attributable to Adbri members saw a decline of 9.5 per cent from the previous year, amounting to $92.9 million.
However, the underlying NPAT showed growth of 43.8 per cent, reaching $111.7 million.
Adbri’s strategic decision to be acquired by CRH is anticipated to be a pivotal move, and will shape the company’s future in the global building materials industry.
ABC last traded at $3.14, at 12:30pm AEDT.
