CRH, the international building materials group, has announced that it has reached an agreement to dispose of its clay and concrete businesses in the UK and its clay business in the US to private equity giant Bain Capital for £414m.

The business being divested comprises clay companies Ibstock in the UK and Glen Gery in the US, as well as UK concrete products companies Forticrete and Supreme Concrete.

CRH is retaining the attached real estate assets, which it estimates are worth £30m, "for future disposal".

As part of the transaction Bain Capital will assume certain debt and pension liabilities relating to the business. The net cash consideration payable to CRH is expected to be approximately £295m.

In 2013, the business generated profit before tax of £16m. Gross assets of the business at 31 December, 2013 totalled approximately £300m.

The transaction is subject to regulatory approvals and is expected to close in H1 2015.