CRH announces selective APAC disposals

CRH announces selective APAC disposals
Published: 12 December 2006

CRH plc, the international building materials group, announces good progress in integrating the operations of Ashland Paving and Construction (APAC) which was acquired by CRH’s US subsidiary, Oldcastle Materials, Inc. in August 2006. The integration has focused on overhead reductions and disposals aimed at enhancing the materials focus of APAC.

The disposals, in six separate transactions, of certain APAC contracting and asphalt activities in Georgia, North and South Carolina, Texas and Virginia have realised combined cash proceeds of approximately US$ 215 million (US$ 195 million net of tax). In the 12 months ending June 2006, sales from the disposed operations amounted to US$ 520 million, with EBITDA of approximately US$ 30 million before charging depreciation and amortisation of US$ 18 million. In the same period, these operations produced 6.7 million tons of asphalt using externally sourced aggregates.

Commenting on these developments, Liam O’Mahony, CRH Chief Executive, said “These selective disposals completed over the past three months are consistent with our stated objective of transitioning APAC from its previous emphasis of “construction with materials” to the Oldcastle model of “materials with construction”. We are pleased with the progress achieved to-date both in relation to these disposals and in the ongoing realisation of the administration and operational synergies indicated with the acquisition of APAC”.