First-half developments at CRH

Company announces first-half acquisitions and investments totalling €470 million 

CRH plc, the Dublin-based international building materials group, undertook 17 acquisition and investment initiatives during the first half of 2013, which, together with the acquisition of Cementos Lemona in Spain (acquired as part of the Uniland asset swap announced in February) and net deferred consideration payments, have brought the company’s development spend for the first half of the year to approximately €470 million. 

Proceeds to date from divestments and disposals, including the Uniland swap, amount to approximately €185 million.

CRH’s Americas businesses completed 12 acquisitions in the first half of 2013 at a total cost of €178 million (US$231 million). Among these, seven were completed by Americas Materials at a combined cost of €44 million (US$58 million), significantly strengthening the Group’s aggregates position by securing approximately 435 million tonnes of reserves as well as yielding synergies in purchasing, logistics and production.

Meanwhile, the Americas Building Products group completed four acquisitions in the first half, including Expocrete, manufacturers of hard landscape, masonry and precast products with seven manufacturing facilities in the Canadian provinces of Saskatchewan, Alberta, Manitoba and British Columbia, who were acquired in March.

In addition to the previously announced acquisition in February of Cementos Lemona in Spain and a related cement importation business in Britain (which were acquired as part of the asset swap in which CRH transferred its 26% stake in Uniland to Cementos Portland Valderrivas), the Group’s European segments completed seven transactions at a total cost of €58 million. 

Among these transactions, Europe Materials acquired the ready-mixed concrete, aggregates and block operations of CEMEX in Northern Ireland. This bolt-on to CRH’s Northstone business will yield cost synergies in addition to securing 24 million tonnes of strategically located reserves.

Also, in May, the geographic reach of CRH’s cement importation business in Britain was expanded with the acquisition of the cement import facilities of the Dudman group, providing new outlets for the Group’s Irish and Spanish cement products.

Commenting on these developments, CRH chief executive Myles Lee said: ‘The Group has continued in 2013 to develop its portfolio across its six main business segments. In particular, the acquisition in March of Expocrete, a major concrete products business in the attractive western Canada market, represents a significant expansion of CRH’s Canadian operations. It brings total Group annualized sales in Canada to €315 million and complements our existing North American architectural products business.’