CRH has announced plans to acquire US-based glazing products manufacturer and distributor C.R. Laurence (CRL) for US$ 1.3 billion. CRL will be rolled into CRH’s Building Envelope business, which includes architectural glass and aluminium glazing systems.
CRL is expected to have sales of US$ 570 million this year, with earnings before interest, tax, depreciation and amortisation (EBITDA) of some US$ 115 million. The company designs, engineers and manufactures components for the installation of architectural glass in commercial and residential applications. It has 1,600 employees in 42 locations, predominantly the US and Canada, but with some in Europe and Australia.
CRL’s current management team will continue to lead the business, reporting to the chief executive of CRH’s Building Envelope business, within its Americas Products Division.
A statement from CRH said, “With its large customer base of professional glaziers and glass shops, broad product offering, product development expertise and strong customer focus, CRL is an exceptional strategic fit with Building Envelope. The combination of the two businesses will create a broad and complementary product offering to a common customer base, which offers significant synergies in supply chain integration, fixed costs, and market expansion through cross-selling.”
In other news, CRH reported improved revenues and profits for the first half of 2015. Revenues were up +13% to € 9.37 billion (US$ 11.1 billion), while EBITDA rose +10% to € 555 million (US$ 633 million).
CEO Albert Manifold said, “We are on track to deliver another year of growth in 2015. Trading in the Americas has been good and, against a mixed macro-economic backdrop, underlying trading in Europe is broadly in line. We have made good progress towards achieving our goal of restoring margins and returns to peak over the cycle, with further margin improvement in each operating division.”