CRH development update for H2 2010
Second-half development initiatives of EUR 0.37 billion bring total 2010 acquisition and investment spend to EUR 0.54 billion
CRH plc, the Dublin-based international building materials group, have announced 17 development initiatives totalling €367 million undertaken during the second half of 2010. These initiatives, together with 14 acquisition and investment transactions completed in the first half of the year, as well as deferred acquisition payments arising in respect of prior years’ acquisitions, bring the Group’s total acquisition and investment spend for the year to approximately €536 million.
Commenting on the developments, Myles Lee, CRH chief executive, said: ‘With acquisition and investment expenditure of €0.37 billion, the second half of 2010 has seen a step-up in the pace of development activity for the Group. The full-year spend of €0.54 billion includes a total of 28 traditional bolt-on acquisitions which offer good value and returns, expanding in particular our Materials footprints in Switzerland and the US.’
CRH’s Europe Materials division spent €84 million in the second half of 2010 on one acquisition and two investments in associates. The acquisition comprised an aggregates and ready-mixed concrete business in Switzerland, furthering the division’s geographic reach and strengthening the reserves position of CRH’s existing Swiss operations. Total 2010 acquisition and investment spend for the division was approximately €110 million.
Meanwhile, the Americas Materials division spent €108 million on nine bolt-on acquisitions, extending its geographical reach and adding 336 million tonnes of aggregates reserves across the US. These transactions bring total 2010 acquisition and investment spend for this division to approximately €235 million.
CRH say the 2010 acquisitions will contribute incremental annualized sales of €0.8 billion, of which approximately €0.2 billion will be reflected in the company’s 2010 results.
