CRH agrees $1.3bn US acquisition, posts 13pc sales jump
Published 27/08/2015 | 07:25
Ireland's biggest listed company CRH has agreed to buy US glazing products manufacturer CRL for $1.3bn.
CRH said the deal would be likely completed early next month and that it would be financed using existing company resources.
CRL will be acquired debt-free, 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...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," CRH said.
CRL employs 1,600 people at 42 locations and posted pre-tax profit of $51m at the end of 2014. CRH has embarked on an aggressive acquisitions strategy in recent months.
Meanwhile, CRH posted a 13pc jump in reported sales - taking in €9.4bn - in the first half. Pre-tax profit rose from €61m to €63m, but was hit by a €38m charge relating to bond redemption.
The turnover increase was driven by a positive performance in the Americas, with European trading more mixed.
The company said it is currently integrating assets acquired on the back of the recent Lafarge-Holcim merger.
"We are on track to deliver another year of growth in 2015," chief executive Albert Manifold said.