Building materials giant CRH announced an agreement to acquire sustainable cement alternatives producer Eco Material from One Equity Partners, Warburg Pincus and Green Cement Investments, in a deal valuing the company at $2.1 billion.

Launched by the selling consortium in 2022, Utah-based Eco Material was formed from the merger of Boral Limited’s North American fly ash business and near-zero-carbon cement alternatives manufacturer Green Cement Inc. The company is one of the leading Supplementary Cementitious Materials (SCM) suppliers in North America – SCMs are alternative materials to portland cement, enabling the production of concrete with a significantly reduced CO2 footprint, in addition to improved performance and longevity.

Cement production is a significant contributor to global greenhouse gas emissions, and one of the more difficult sectors to decarbonize. Cement currently accounts for approximately 8% of global carbon dioxide emissions, with over 900 kg of CO2 emissions generated for every 1,000 kg of material produced.

Eco Material’s products use coal ash and volcanic ash to replace a portion of emissions intensive portland cement in concrete. The company also supplies services to electric utilities related to management of coal ash and other coal combustion products, recycling more than 10 million tons annually, enabling further emissions reductions and avoiding landfilling of materials.

Grant Quasha, Eco Material Chairman and CEO, said:

“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.”

According to CRH, the acquisition will support the company in meeting growing demand in North America for cementitious products and secure a long-term supply of critical materials, as well as expanding CRH’s national distribution network and innovation capabilities.

CRH CEO Jim Mintern said:

“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.”