Building materials giant CRH has announced an agreement to acquire Eco Material, a sustainable cement alternatives producer, from One Equity Partners, Warburg Pincus, and Green Cement Investments. The deal values Eco Material at $2.1 billion.
Eco Material was established in 2022 through a merger of Boral Limited’s North American fly ash business and Green Cement Inc., a near-zero-carbon cement alternatives manufacturer. Based in Utah, Eco Material is a leading supplier of Supplementary Cementitious Materials (SCMs) in North America. These materials serve as alternatives to Portland cement, facilitating the production of concrete with a significantly reduced carbon footprint, alongside enhanced performance and longevity.
Cement production is a major contributor to global greenhouse gas emissions, accounting for approximately 8% of global carbon dioxide emissions. Over 900 kg of CO2 is emitted for every 1,000 kg of cement produced, making it a challenging sector to decarbonise.
Eco Material’s products incorporate coal ash and volcanic ash to substitute a portion of the emissions-intensive Portland cement in concrete. Additionally, the company provides services to electric utilities concerning the management of coal ash and other coal combustion products, recycling over 10 million tonnes annually. This process contributes to further emissions reductions and prevents the landfilling of materials.
Grant Quasha, Chairman and CEO of Eco Material, expressed enthusiasm about the acquisition, stating, “Eco Material is excited to enter a new phase of growth, partnering with industry leader CRH to enhance our scale and suite of offerings to our Utility partners and Ready-Mix customers.”
CRH has indicated that the acquisition will support its efforts to meet the rising demand for cementitious products in North America. It will also secure a long-term supply of critical materials, expand CRH’s national distribution network, and bolster its innovation capabilities.
Jim Mintern, CEO of CRH, remarked, “As we continue to modernize North America’s infrastructure, this transaction secures the long-term supply of critical materials for future growth and puts CRH at the forefront of the transition to next-generation cement and concrete.”
