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Building products group Adbri falls to foreign control

Manufacturing News

The directors of building products group Adbri have entered into a scheme implementation deed under which a consortium of global building supplies group CRH plc and local premixed concrete supplier Barro Group will acquire the company.

The partners made a non-binding offer valuing cement and lime manufacturer Adbri at $2.1 billion.

Barro Group already owns or speaks for 47.3 percent of the issued capital of Adbri, with CRH to buy the remaining shares and take control of the Adelaide-based national business for $1.1 billion. Adbri’s Chairman Raymond Barro is a member of the Barro family.

Under the scheme independent shareholders will receive $3.20 for each Adbri share in cash, a 41 percent premium on the closing price on 15 December, 2023.

Adbri’s independent directors unanimously recommend that shareholders vote in favour of the scheme.

Adbri independent director Samantha Hodge said: “With the objective of maximising value for the independent shareholders, the (directors have) negotiated binding transaction documentation with CRH following completion of its confirmatory due diligence.

“The Adbri independent directors are unanimous in their view that the scheme will provide an attractive value outcome for independent shareholders if implemented.”

At the same time Adbri released its results for the year ended 31 December 2023.

Adbri reported and EBIT profit down 5.1 percent on the previous year to $140.1 million on revenue up 13.1 percent to $1.92 billion.

The company struck no dividend for the year, down from five cents in the previous corresponding period.

Further reading:
Adbri could be the latest to fall to overseas takeover

Picture: Adbri

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