Development activity continues at CRH

CRH announce first-half development spend of €0.2 billion plus agreement to acquire Belgian materials business

CRH plc, the Dublin-based international building materials group, have announced that 21 acquisition and investment initiatives, totalling approximately €0.2 billion, were undertaken during the first half of 2011, as part of the company’s continuing programme of development activity.

The development initiatives included: one acquisition and two investments totalling €40 million by CRH’s Europe Materials division; four acquisitions and one investment totalling €20 million by the Europe Products & Distribution; seven acquisition and two investments totalling €98 million (US$137 million) by Americas Materials; and four acquisitions totalling €28 million (US$40 million) by Americas Products & Distribution.

The Group also announced that its Europe Materials division had reached agreement to acquire the family owned VVM Group of businesses, which operates two cement grinding mills with a combined capacity of 1.5 million tonnes in Belgium, and two ready-mixed concrete plants in Belgium and France.

Completion of this transaction, which is subject to regulatory approval, will bring cumulative development spend for the Group to approximately €0.3 billion.

Commenting on these developments, Myles Lee, CRH chief executive, said: ‘The first six months of 2011 saw development activity continue across all six operating segments, strengthening our existing market positions and adding valuable and well-located aggregates reserves.

‘The VVM transaction, which is subject to regulatory approval, represents an important strategic opportunity for our existing Cementbouw cement trading and ready-mixed concrete business in the Benelux, while also complementing our Products businesses in the region.

‘The pipeline of potential acquisitions remains good, and with our strong balance sheet we have the capacity, where we see value, to capitalize on these opportunities.’

Mr Lee added that the Group’s divestments in the first half of 2011 had generated proceeds for reinvestment of approximately €345 million.