(Reuters) -Building materials maker CRH said on Tuesday it has agreed to acquire Eco Material Technologies, a supplier of supplementary cementitious materials, for $2.1 billion to expand its presence
Building materials maker CRH to acquire Eco Material for $2.1 billion
CRH's Strategic Acquisition of Eco Material
(Reuters) -Building materials maker CRH said on Tuesday it has agreed to acquire Eco Material Technologies, a supplier of supplementary cementitious materials, for $2.1 billion to expand its presence in North America.
Details of the Acquisition
Dublin, Ireland-based CRH operates through two regional divisions Americas and International, of which the Americas business brings in 65% of revenues as per its latest annual filing, and includes the production of aggregates, cement, ready-mixed concrete and asphalt used in construction.
Impact on the Cement Industry
As traditional cement production is responsible for around 8% of global CO2 emissions, the industry has been making the switch to low-carbon alternatives, through investments, joint ventures and mergers.
Future Plans for Eco Material
With the takeover of the Utah-based near-zero carbon cement producer Eco Material, CRH also acquires its national network of fresh and harvested fly ash, pozzolans, synthetic gypsum and green cement operations.
"This transaction secures the long-term supply of critical materials for future growth and puts CRH at the forefront of the transition to next generation cement and concrete," CRH chief executive Jim Mintern said.
CRH, which has its presence across 28 countries, said it plans to fund the deal, expected to close in 2025, with cash on hand.
The business will operate as Eco Material Technologies, a CRH Company.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shailesh Kuber)
