DUBLIN, Aug 24 (Reuters) - CRH has sold its U.S. distribution business to Beacon Roofing Supply Inc. for $2.63 billion in cash and will use the proceeds for acquisitions elsewhere, the Irish building materials group said on Thursday.
CRH, the world's third-biggest building materials supplier, said it sold the business at 16 times earnings before interest, tax, depreciation and amortisation (EBITDA) and also announced the acquisition of a leading German lime and aggregates business for 600 million euros ($708 million).
"When we look at the value we could crystallise through this transaction, no way could we create that value for our shareholders if we were to hang onto the business," CRH chief executive Albert Manifold told Reuters in a telephone interview.
"We will redeploy that (cash) in the years ahead into higher growth and better opportunities. It doesn't change the strategy of CRH overall, our U.S. distribution accounted for 5 percent of group EBITDA, it doesn't shift the needle."
$1 = 0.8477 euros Reporting by Padraic Halpin; Editing by Mark Potter