One Equity Partners and Warburg Pincus Sell Eco Material Technologies to CRH for $2.1 Billion

In a landmark deal aimed at fostering sustainability and technological advancement in construction materials, One Equity Partners (OEP) and Warburg Pincus have executed an agreement to sell Eco Material Technologies to CRH for a remarkable total of $2.1 billion. This transaction marks a significant milestone in the construction materials industry and underscores the increasing value of eco-friendly solutions.

Founded in 2022 from the merger of Boral Limited's North American fly ash operations and Green Cement Inc., Eco Material Technologies has swiftly positioned itself as a leading independent supplier of Supplementary Cementitious Materials (SCMs) across North America. With its headquarters in Utah, the company operates a national network comprising over 125 sites, which includes utility source locations, production facilities, and terminals. It focuses on providing innovative solutions that support sustainable construction practices by processing and recycling millions of tons of materials annually.

Eco Material Technologies collaborates closely with major electric utilities to recycle approximately seven million tons of fly ash and three million tons of synthetic gypsum each year. This not only helps in producing environmentally friendly products but also significantly reduces carbon emissions associated with traditional cement manufacturing processes.

Matt Hughes, a partner at One Equity Partners, praised Eco Material’s outstanding growth trajectory, emphasizing how the company leveraged its technological advancements to expand its cement alternatives network. He remarked, “We are proud of our partnership's achievements, and we are optimistic that CRH will continue this growth by utilizing its expansive distribution capabilities.”

Roy Ben-Dor, Managing Director at Warburg Pincus, added, “The significant progress we've made together is commendable. We believe that CRH will foster a new growth chapter for Eco Material, enhancing customer service and product availability.”

Grant Quasha, the CEO of Eco Material Technologies, expressed gratitude towards One Equity Partners and Warburg Pincus, attributing their support as instrumental in the company's rapid development since its inception. “We are proud of our achievements and look forward to a promising future under CRH's leadership,” he stated.

Despite the uplifting sentiments surrounding this acquisition, the deal is subject to regulatory approval and customary closing conditions, with a projected completion date set for 2025. Jefferies LLC is acting as the financial advisor, while Latham & Watkins LLP serves as the legal advisor for Eco Material.

With the move to acquire Eco Material Technologies, CRH reinforces its commitment to sustainable practices in construction, emphasizing the importance of eco-friendly alternatives as the industry progressively shifts towards reducing its carbon footprint. The environmentally focused, near-zero carbon cement products developed by Eco Material are crucial in this transition, presenting an effective alternative to conventional Portland cement.

Through this acquisition, CRH aims to solidify its leadership position in the global market while making significant strides in addressing climate change challenges. The combination of Eco Material’s advanced technologies and CRH's expansive operational reach is anticipated to enhance innovation and sustainability across CRH's product offerings.

In summary, the sale of Eco Material Technologies represents not just a financial transaction but a pivotal step towards promoting environmentally responsible practices in the construction sector. As the demand for sustainable materials continues to escalate, this strategic partnership is poised to yield positive impacts on both the market and environmental health.