CRH splashes out another EUR348m in the USA

CRH splashes out another EUR348m in the USA
Published: 14 March 2008

CRH is spending EUR348m (US$540m) on a major expansion of its US architectural products activities in buying the Texas-based Pavestone Group on an EBITDA multiple of 8.3 times, assuming regulatory approval is secured.  Further payments may follow, depending on future profitability. Pavestone, generates sells some 70% of its turnover into the D-I-Y market has 16 concrete paver plants across the United States and also has bagging plants for decorative stone at 14 of these locations.  As CRH already has 30 paver plants and eleven bagging plants, considerable synergy benefits should arise from the deal, helping to justify the price paid for the business, which in 2007 generated a turnover of US$368m and an EBITDA of approximately US$65m.