Recently, CRH, a supplier of building materials, has signed an agreement to acquire Eco Material Technologies, a North American supplier of supplementary cementitious materials (SCM), for a total consideration of $2.1 billion. The strategic acquisition further strengthens CRH's position in North America as a leading producer of cement-based materials, with dual capabilities in cement and mineral admixtures, said Jim Mintern, CEO
of CRH. He noted that the transaction demonstrates CRH's rigor in capital allocation and that by establishing a leading position in markets with long-term growth potential and high returns, CRH is better able to take advantage of market growth trends. The acquisition secures long-term availability of key materials for future growth as North America modernizes its infrastructure and puts CRH at the forefront of the transition to a new generation of cement and concrete. He also mentioned that with more than 1,100 Eco Material employees joining the CRH team, the combined operations will create a tighter business network to better serve customers. Headquartered in Utah, USA
, Eco Material operates a nationwide network of fresh and recycled fly ash, pozzolan, synthetic gypsum and green cement operations in more than 125 utility sources, production facilities and terminals. Eco Material works with leading electric utilities to process and recycle approximately 7 million tons of fly ash, 3 million tons of synthetic gypsum and other materials annually, with significant additional capacity currently under construction. Grant Quasha, Chairman and CEO
of Eco Material, said Eco Material is excited to enter a new phase of growth, working with industry leader CRH to expand its scale and reach to utility partners and ready-mix concrete customers. He stressed that CRH's strong industry presence and strong focus on safety, innovation and customer service fit perfectly with Eco Material's core values.
The transaction is subject to regulatory approval and customary closing conditions and is expected to close in 2025. CRH plans to use its own cash to fund the transaction and does not expect a change in its credit rating.
Eco Material Technologies is a leading producer and supplier of sustainable cement alternatives in North America. Its proprietary green cement technology produces innovative, near-zero-carbon, sustainable alternatives to concrete using fly ash and other pozzolanic materials. Its supplementary cementitious materials (SCMs) such as fly ash can replace about 20% of the Portland cement in the concrete mix, while making the concrete stronger, more economical, and more environmentally friendly. Eco Material is also a leader in the production of non-traditional mineral admixtures through enrichment from ash, bottom ash and natural pozzolans in landfills or ash pits.