CRH first-half development spend EUR0.25bn

CRH first-half development spend EUR0.25bn
03 July 2012

CRH plc has completed 18 acquisition and investment initiatives undertaken during the first-half of 2012. The 18 transactions, comprising five in Europe and 13 in the Americas, bring first-half development spend for the Group to approximately €0.25bn, the group said in a development strategy update today.

The European deals amounted to an investment of EUR155m. These transactions include a significant addition in Germany to the company’s RMI-oriented Shutters & Awnings business and two acquisitions by its Construction Accessories business which expand its footprint in Southeast Asia and strengthen its existing business in the UK. The Distribution business added six builders merchants outlets in the Netherlands, and CRH also invested further in its Materials associate in China.

Acquisitions in the Americas Materials Division totaled EUR89m and included the completion of 10 bolt-on transactions across its operations. These added 47Mt of “strategically-located” aggregates reserves, according to the group. The Architectural Products business expanded its national packaged products operations with two acquisitions adding plants in Texas, Louisiana and Florida, and also strengthened its masonry operations in the Northeast with an acquisition in Rhode Island.

In terms of divestment, in addition to the previously-announced sale of its 49% stake in Portuguese cement producer Secil, the first half of 2012 also saw the disposal by Europe Products of Magnetic Autocontrol, which is headquartered in Germany and supplies vehicle and pedestrian access control products. This brings first-half divestment proceeds, including smaller transactions, to €0.7bn.

Commenting on these developments, Myles Lee, CRH Chief Executive, said: “The bolt-on transactions completed in the first half of 2012 reflect our continuing strategy of completing acquisitions which fill out our regional and product level positions, enhance vertical integration and bolster our strong long-term permitted reserves positions. The transactions announced today bring total development spend over the past 12 months to approximately €0.7bn.”

Published under Cement News