CRH announces acquisitions in Turkey and US

CRH announces acquisitions in Turkey and US
Published: 16 April 2007

CRH has announced two transactions, one in Turkey and one in the US, completed for a total cash consideration, including debt assumed, of US$293m (EUR225 million).  
 
In Turkey, CRH has acquired 50% of Denizli Cement, an integrated cement and readymixed concrete business, from Eren Holdings, a privately-owned industrial group.  
 
Under the terms of the joint venture agreement with Eren Holdings, CRH will have joint management control of the business, which is based in the city of Denizli in the Aegean region of southwestern Turkey.  
 
Denizli has a modern cement facility with a clinker capacity of 1.8Mt. The company has limestone reserves of more than 100Mt and produced 1.8Mt of cement in 2006. Denizli also operates a network of 13 readymixed concrete plants in Denizli and the surrounding area, which produced 1.3Mm3 of concrete in 2006.  
 
In Florida, CRH has exercised its option to buy out the remaining 50% stake in Paver Systems.  
 
CRH acquired an initial 50% of Paver Systems in January 2004 and has fully consolidated its results since then, deducting a 50% minority interest in arriving at Group profit after tax and earnings per share.  
 
Paver Systems is a manufacturer of interlocking concrete pavers and, with three facilities in West Palm Beach, Tampa and Orlando, the company is well-positioned to benefit from the continuing strong professional hardscapes market in Florida.  
 
Combined 2006 results on a 100% basis for Denizli and Paver Systems amounted to $223m in sales and $79m  in profit before interest, tax, depreciation and amortisation (EBITDA).