CRH constructs €2bn warchest with sale of US distribution unit

Tarmac owner CRH built a near €2 billion (£1.8 billion) warchest on Thursday after selling its US building distributor to American rival Beacon Roofing Supply.

It also paid Xella International €600 million to buy its German lime business, Fels, which has over 1 billion tonnes of limestone reserves.

CRH said it planned to plough $2.6 billion made from the US sale back into more takeovers. Debt has also fallen from €7 billion to €6.4 billion.

Chief executive Albert Manifold said the deals underlined CRH’s strategy of putting money into growth areas in Europe.

CRH bought Tarmac, the UK’s largest building materials company, from Lafarge Holcim in February 2015. The division has prospered from London’s infrastructure boom.

The sale of the smaller part of CRH’s US unit — comprising primarily the New Jersey-based Allied Building Products — still leaves the company with a big presence in the States.

About 65% of CRH’s earnings come from America and the business has benefited from an infrastructure push there.