CRH second half acquisitions total €375 million
By Helen Wright03 January 2013
Expansive Irish materials producer CRH has continued its acquisition drive, securing deals valued at €375 million during the second half of 2012. This brings its full-year development activity to almost €630 million.
The company said it agreed 18 acquisition and investment initiatives during the last six months of 2012, including transactions in Europe totalling €119 million.
Significant transactions in Europe included CRH’s Finnish subsidiary Rudus’ acquisition of concrete producer Lemminkäinen Rakennustuotteet (LR) in September. LR reports annual sales of €85 million and operates eight concrete products plants and 16 ready-mixed concrete plants across the country.
In December, meanwhile, CRH also acquired the Isle of Man assets of Cemex. The business is the sole producer of sand and gravel as well as the market leader in ready-mixed concrete on the island, and also operates a joint venture importing bulk cement.
Also in December, CRH’s Engineered Construction Accessories business completed the acquisition of Helifix, a UK-based manufacturer of construction ties, fixings and sustainable masonry repair systems.
And CRH spent €256 million on 12 acquisitions in the Americas region during the six months to 31 December, 2012. Six of these acquisitions, all in the eastern US, focused on expanding its presence in aggregates at a combined cost of €184 million.
CRH said its largest individual transaction this year was the acquisition in December of a majority share of New Jersey-based Trap Rock Industries (TRI), which operates four quarries and eight asphalt operations in central and southwest New Jersey.
During the last six months of 2012, CRH’s business partner in China, Yatai Group Building Materials, in which it owns a 25% stake, also invested in the development of a precast concrete plant located in Shenyang, capital of Liaoning Province.
CRH chief executive Myles Lee highlighted the fact that the company had focused on increasing its presence in the repair, maintenance and improvement industry, particularly in its products and distribution businesses.
“The €630 million of development activity during 2012 reflects CRH’s long-term, value-based approach to developing our balanced portfolio,” Mr Lee added.