Tuesday 20 November 2018

CRH spends €11.2m on US Concrete deal

Joe Brennan

CRH has acquired two American building materials businesses from peer US Concrete in a $16.5m (€11.2m) deal.

The purchase, which was carried out through CRH's US subsidiary Oldcastle Materials, consists of US Concrete's operations in Knoxville, Tennessee and Wyoming, Delaware.

The operations turned in combined sales of $34.1m (€23m) for the 12 months to the end of September.

"This is another example of CRH taking advantage of divestures from a large building materials company and keeps the bolt-on deal flow ticking over," said Robert Eason, an analyst with Goodbody Stockbrokers.

However, the deal's size is a mere drop in the ocean for the acquisitive Irish group, which spent almost €1bn on bolt-on deals on both sides of the Atlantic during the first six months of the year.

It subsequently spent $350m (€236.7m) on four transactions in America and bought the 55pc stake in Dutch group Cementbouw, which it did not already own, for an unknown price.

In the middle of September, CRH revealed that it was in talks to buy $4.5bn (€3bn) worth of businesses in America and Europe from Mexico's Cemex, which is selling the assets to gain US Department of Justice approval for its $14.2bn (€9.6bn) acquisition of Rinker Group, a former competitor in the US.

If the Cemex deal gets over the line before the end of this year, it would lead to CRH smashing through its target of completing $2bn (€1.35bn) of transactions this year.

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