Friday 24 November 2017

CRH spends €250m on acquisitions in first half of 2012

John Mulligan

John Mulligan

Aggregates group CRH spent close to €250m on acquisitions during the first half of 2012 as it continued its bolt-on strategy.

The figure spent was significantly lower than the €700m it received in proceeds from the sales of stakes in other businesses in the same period.

Those sale proceeds comprised largely of the €574m CRH got when it finalised the sale this year of its stake in a Portuguese joint venture after it fell out with its partner, Semapa.

The sale of the stake in Secil occurred after a Paris-based arbitration court ruled last year that Semapa would have to buy out CRH at that price.

Releasing data yesterday, CRH said its European division spent €155m on acquisitions during the first six months of 2012.

CRH bought German-based shutter and awnings maker Alulux Erhardt, which operates from six locations in the country.

About 80pc of the firm's sales are to the residential repair, maintenance and improvement market.

The company also bought Malaysia-headquartered Mom-ent Group, which has branches in Singapore, the Philippines and India.

In the UK it bought Anchor Bay Construction Products, which supplies customers from locations in London and Birmingham.

CRH said it also added six branches to its builders merchants network in the Netherlands after buying Wijck's Afbouwmaterialen.

"The bolt-on acquisitions 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 long-term permitted reserves positions," said CRH chief executive Myles Lee.

The Europe division also injected further equity into its China associate Yatai Building Materials. The Chinese firm, of which CRH owns 26pc, received the cash for the construction of a cement grinding facility capable of handling 1.2 million tonnes a year.

CRH's Americas arm spent €89m on acquisitions, which included 10 acquisitions by its materials division.

Shares in CRH closed up just over 1pc in Dublin yesterday at €15.50.

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business