CRH has agreed to buy a US provider of sustainable cement alternatives to the construction market, Eco Material Technologies, for $2.1 billion (€1.8 billion) as the group advances plans to lower its carbon footprint.
It marks the largest deal struck by the Irish-based building materials and services giant since late 2023.
Eco Material, headquartered in Utah, has developed technologies to utilise materials like fly ash, a byproduct of coal combustion, to partly replace cement used in the construction sector.
The company works with leading US electricity utilities to process and recycle approximately seven million tonnes of fly ash and three million tonnes of synthetic gypsum, another so-called “supplementary cementitious material” (SCM), with significant additional capacity currently under construction, CRH said in a statement.
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“This strategic acquisition further positions CRH as a leading cementitious player in North America with both cement and SCM capabilities,” said Jim Mintern, chief executive of CRH.
“As we continue to modernise North America’s infrastructure, 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. With more than 1,100 Eco Material employees joining the CRH team, our combined operations create a more connected business to better serve our customers.”
The proposed transaction is subject to regulatory approval and customary closing conditions and is expected to close in 2025. CRH plans to fund the transaction with cash on hand and does not expect any change in its credit ratings.
Goodbody Stockbrokers analyst Shane Carberry said the deal helps CRH secure a long-term supply of critical materials and strengthens its position as a leading cementitious player in North America.
“Overall, we see this as a shrewd acquisition from CRH,” he said. “Upon completion, the deal will make CRH the market leader in SCMs, significantly expanding its cementitious capacity as well as bolstering its national distribution network.”
