Building materials giant CRH will acquire Barrette Outdoor Living, which provides residential fencing and railing solutions in North America.

RH, Ireland’s most valuable company, has reached an agreement with Canadian private equity firm TorQuest Partners and investment group Caisse de dépôt et placement du Québec (CDPQ) to acquire Barrette for 1.9 billion dollars (1.8 billion euros).

The agreement follows the recent sale of CRH’s Building Envelope business in February. CRH sold the company for an enterprise value of $3.8 billion (€3.5 billion) to KPS Capital Partners.

Barrett is headquartered in Ohio and has ten manufacturing facilities in the United States. For the fiscal year ended Jan. 1, 2022, Barrette reported pre-tax profit of $79 million. It also holds gross assets of $1.2 billion.

In 2021, CRH’s pre-tax profit was $2.6 billion (€2.4 billion), while profit before interest, taxes, depreciation and amortization (EBITDA) was 5.35 billion dollars (4.82 billion euros) over the same period. The group’s sales increased by 12% compared to 2020 to reach 31 billion dollars (28 billion euros), an increase of 8% at constant scope.

The acquisition of Barrette Outdoor Living is expected to be finalized in the second half of 2022.

“Barrette is an excellent complement to the CRH. Our architectural products business has been one of our fastest growing businesses in recent years and the acquisition of Barrette complements and enhances our existing offering of sustainable outdoor living solutions in North America,” said Albert Manifold, CEO of CRH.

Goodbody analyst David O’Brien said CRH already has a leadership position in the U.S. outdoor products category through its APG business, which has operations across the country.

“Barrette’s suite of products complements APG’s solution offering and will reinforce CRH’s drive to ‘own the backyard,'” he said.

“Additionally, Barrette has a geographical bias towards the east that can be expanded through CRH’s more national network.”

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