(Bloomberg) -- CRH Plc, the world’s second-biggest building material maker by market value, is planning a sale of its Oldcastle Building Envelope unit that could fetch more than $3 billion, people with knowledge of the matter said.
The Irish company is working with advisers and recently started reaching out to potential buyers, said the people, who asked not to be identified discussing confidential information. The U.S.-based unit is likely to attract interest from private equity firms, according to the people.
Oldcastle Building Envelope generates around $300 million in annual earnings before interest, taxes, depreciation, and amortization, the people said. The unit makes glass building products for projects ranging from storefronts and building entrances to shower enclosures and skylights.
Chief Executive Officer Albert Manifold has made several bolt-on acquisitions for CRH this year, including the purchase of Hancock Concrete Products LLC to expand its concrete pipe business in the U.S. Midwest. Any transaction would add to the $49 billion of deals targeting the building materials industry announced this year, according to data compiled by Bloomberg.
CRH shares in London have gained about 25% this year, valuing the company at about $39 billion. The Dublin-based company, which regularly prunes its portfolio, could still decide to keep the business, the people said.
A representative for CRH declined to comment.
©2021 Bloomberg L.P.