CRH acquire New Jersey operation
CRH plc, the Dublin-based international building materials group, have announced the purchase by their Oldcastle Materials Group of the assets of Mount Hope Rock Products for a cash consideration of $138 million (£100.5 million) plus a deferred consideration of $6 million (£4.3 million) payable over three years.
Mount Hope are an integrated aggregates, asphalt and paving company operating in the northern New Jersey and New York City markets. In the year to March 2001 the company produced 4.1 million tons of aggregates and 1.4 million tonnes of asphalt. Their main location is Mount Hope granite quarry at Wharton, New Jersey, which is strategically located some 25 miles west of New York City. Permitted reserves at this site amount to over 300 million tons.
In the year to March 2001 Mount Hope achieved a pre-tax profit of $19 million (£13.8 million) on sales of $105 million (£76.5 million). Adjusted trading profits amounted to $13 million (£9.4 million).
Post acquisition, Mount Hope will be integrated into Oldcastle’s existing Tilcon New York operation, which serves the New York metropolitan market, southern New York state and New Jersey.
Oldcastle say the acquisition forms an excellent fit with Tilcon’s Dell and Millington operations in central and northern New Jersey, and significantly strengthens the Group’s market and reserves in one of the most heavily populated region of the US, where good demand prospects are underpinned by strong highway programmes.
