A Turkish Private Equity Web Log

In an effort to cover the Turkish Private Equity Industry - for the promotion of Entrepreneurship, the private equity asset-investment model, and the communication thereof.

CRH Invests in Turkey: Takes 50% of Denizli Cement
CRH, an international building materials group, announced that it had purchased a 50% interest in Eren Holding's Denizli Cement, an integrated cement and readymixed concrete business. CRH is an Ireland-based conglomerate with over 80,000 employees operating in 28 countries with its core businesses in primary materials, value-added building products, and specialist building materials distribution. CRH holds a market capitalization of Euro 17.4 billion. The deal was announced in conjunction with another deal in the US, placing the value of both deals at roughly Euro 225 million in cash and debt. Unfortunately, because of this, we are unable to get exact numbers with the Turkish transaction. According to the CRH press release:

Denizli has a modern cement facility with a clinker (baked and fused clay, shale, and sandstone) capacity of 1.8 million tonnes and is the market leader in its region. The company has limestone reserves of more than 100 million tonnes and produced 1.8 million tonnes of cement in 2006. Denizli also operates a network of 13 readymixed concrete plants in Denizli and the surrounding area, which produced 1.3 million cubic metres of concrete in 2006.

Commenting on the transactions, CRH Chief Executive Liam O'Mahony said: "Denizli, a modern vertically integrated cement and readymixed concrete business with excellent reserves and a strong management team, is CRH’s first investment in Turkey. It also represents a further step in the expansion of Europe Materials presence in the Mediterranean Basin."

As seen in the previous post (Turkish Real Estate: The Sleeping Giant), this transaction maintains the momentum that Turkey is seeing in the construction and building materials sectors. It is only natural for a company with European expansion objectives to try and get a piece of this market, especially when it is predicted to be booming for the next 10 years. The only question is - who will be next?

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