US expansion for CRH

CRH plc say their American materials division, Oldcastle Materials Group, has reached agreement with US Aggregates Inc (USAI) to acquire all of USAI’s operations in the western and south-eastern US for a cash consideration of $140 million (£102 million).

USAI’s assets in the western US comprise a fully integrated construction materials business in Utah, Arizona and Nevada, with aggregates, asphalt and ready-mixed concrete operations and access to over 300 million tons of reserves. In 2001, USAI’s western assets sold 5.3 million tons of aggregates, 1.3 million tons of asphalt and 0.3 million cubic yards of ready-mixed concrete.

In the south-eastern US USAI’s assets comprise an aggregates business in the Birmingham AL and Chattanooga TN areas, with annual volumes of 7.7 million tons and access to 340 million tons of reserves. The proposed deal also includes a ready-mixed concrete business in Chattanooga.

Commenting on the proposed transaction, Tom Hill, chief executive officer of Oldcastle Materials Group, said that as well as allowing further expansion in the Mountain region, the proposed deal would also offer the prospect of strategic entry into Alabama and Tennessee.

Completion of the deal is subject to US bankruptcy procedures and anti-trust laws relating to USAI.