CRH to acquire Ashland Paving And Construction, Inc
CRH plc, the international building materials group, announces that its US subsidiary, Oldcastle Materials, Inc., has reached agreement to purchase Ashland Paving And Construction, Inc (APAC) for a total consideration, including zero net debt at acquisition, of US$1,300m; the final price to be adjusted for seasonal working capital and some other accounts at completion. Goodwill arising on the transaction is estimated at approximately US$450m. Completion of the purchase of APAC, which has received antitrust clearance, is anticipated before the end of August. CRH will finance the acquisition using debt.
APAC, headquartered in Atlanta, GA, is a leading US aggregates, asphalt and heavy highway construction company with approximately 9700 employees and extensive operations in 14 mid-western and southern states. In the 12 months ending June 2006 sales amounted to US$2.9bn with EBITDA of approximately US$220m, before charging depreciation and amortisation of US$ 106m. Gross assets as at 30 June 2006 were US$1,665m.
In the year ended June 2006 APAC produced 32.5Mt of aggregates, 31Mt of asphalt and 1 million cubic yards of readymixed concrete. Approximately one-third of APAC’s aggregates production and two-thirds of asphalt production are consumed internally by APAC’s construction operations.
Published under Cement News
