After news outlets began reporting the possible sale of Oldcastle BuildingEnvelope® by CRH, the latter company’s shares began to skyrocket, according to The Irish Times.
Shares in Dublin-based CRH rose as much as 3.6% in afternoon trading in Dublin as investors digested the report before ending the session up 2.7% at $51.45*, the outlet reported on Tuesday.
On Wednesday, EFT Daily stated CRH’s stock price crossed above its 200-day moving average during trading. The stock has a 200-day moving average of GBX 3,658.61 ($48.52) and traded as high as GBX 3,902 ($51.74). CRH shares last traded at GBX 3,845 ($50.99), with a volume of 486,604 shares trading hands.
Shares of CRH opened at $50.94 on Thursday, online stock research tool Market Beat reported. The firm has a 50-day moving average price of $48.72 and a 200-day moving average price of $50.23. The company has a current ratio of 1.88, a quick ratio of 1.47 and a debt-to-equity ratio of 0.53. CRH has a 52-week low of $39.10 and a 52-week high of $53.99.
CRH Plc, parent company of (OBE), is planning a sale of the unit that could be valued at more than $3 billion, according to a report from Bloomberg. The report notes that CRH 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 report also stated that there is interest from firms and buyers, and Stifel Financial Corp. analyst Tobias Woerner said that a merger with Apogee is one option to be considered.
What Potential Buyers Should Know
With rumors of a big sale swirling through news and media outlets, some could understandably wonder, “What do CRH and OBE look like right now?”
As part of CRH’s trading update that was published on November 23, 2021, CEO Albert Manifold states, “Our uniquely integrated and solutions-focused business model has supported further margin expansion across our businesses, while our strong cash generation and disciplined approach to capital allocation provides further opportunities to create value for all of our stakeholders. Looking ahead to the remainder of the year, we expect to deliver another record performance for the Group, with full-year EBITDA in excess of $5.25 billion.” CRH’s website reports that the company saw $27.6 billion in revenue in 2020.
According to the Bloomberg report, “OBE generates around $300 million in annual earnings before interest, taxes, depreciation and amortization,” people familiar with the matter said. These sources spoke on the condition of anonymity due to the subject’s confidential nature. The sources also said the sale could likely be worth as much as $3 billion and attract interest from private equity firms.
Earlier this year, OBE completed acquired certain assets and liabilities of Graham Architectural Products Co., based in York, Pa. According to the company, Graham is a nationally recognized pioneer in the fenestration industry, serving the Midwest and Northeast regions of the U.S.
Officials at OBE declined USGNN™’s request for comment.
*indicates financial information converted from Euros to U.S. Dollars on Thursday, December 9, 2021.