CRH PLC (LSE:CRH) said it agreed to buy Barrette Outdoor Living Inc, North America's leading provider of residential fencing and railings, for US$1.9bn (£1.5bn).
The price comprises US$1.85bn in cash and about US$40mln of capitalised lease liabilities.
The FTSE-100 building materials company said the transaction, which will be financed through existing resources and subject to regulatory approval, is expected to close in the second half of this year.
For the year ended 1 January 2022, Barrette reported pretax profit of US$79mln and gross assets of US$1.2bn. CRH said the deal represented an acquisition multiple of about 10 times EBITDA, pre-synergies.
“Our Architectural Products business has been one of our fastest growing businesses in recent years and the acquisition of Barrette complements and enhances our existing offering of sustainable outdoor living solutions in North America,” said CRH chief executive Albert Manifold.
Last month, CRH completed the sale of its Building Envelope business, which provides glass products to customers primarily in North America, for US$3.8bn.