8-K/A

CRH PUBLIC LTD CO 8-K/A Report (May 19, 2003)

Filed May 19, 2003For Securities:CRH

Summary

CRH plc, a global building materials group, has amended its Form 6-K filing to provide details on a significant acquisition by its Americas Materials Division, Oldcastle Materials Group. The company acquired S.E. Johnson, a leading aggregates and asphalt producer with construction activities, for a total cash consideration of $217 million (including assumed debt). The net cost, after anticipated asset sales, is $177 million. This strategic acquisition significantly strengthens CRH's position in the U.S. Midwest, particularly in aggregates and asphalt production and reserves. The acquisition of S.E. Johnson, founded in 1929 and based in Toledo, Ohio, expands CRH's operations into northern Ohio, southeastern Michigan, and northeastern Indiana. The business comes with substantial permitted reserves of 600 million tons and generated $272 million in sales in 2002, with an operating profit (EBIT) of $18 million before depreciation. CRH plans to integrate S.E. Johnson with its existing Shelly Group and Thompson-McCully operations, aiming for cost savings and enhanced vertical integration.

Key Highlights

  • 1CRH plc's Materials Division (Oldcastle Materials Group) acquired S.E. Johnson for $217 million (including debt), with a net cost of $177 million after expected asset sales.
  • 2S.E. Johnson is a significant aggregates and asphalt producer with construction operations in Ohio, Michigan, and Indiana.
  • 3The acquired business possesses 600 million tons of permitted reserves.
  • 4In 2002, S.E. Johnson reported sales of $272 million and an EBIT of $18 million.
  • 5This acquisition is expected to enhance CRH's vertical integration and market presence in the U.S. Midwest.
  • 6S.E. Johnson will be integrated with CRH's existing Shelly Group and Thompson-McCully operations.
  • 7The deal is part of CRH's strategy to strengthen its position in key regional markets.

Frequently Asked Questions

This is an amended Form 6-K filing by CRH plc to provide additional details and incorporate previously omitted information regarding the acquisition of S.E. Johnson by its U.S. Materials Division, Oldcastle Materials Group.

The acquisition aligns with CRH's strategy for enhanced vertical integration in the Midwest. S.E. Johnson strengthens CRH's aggregates business, improves its market positioning in Michigan and other key Midwest states, and offers opportunities for significant cost synergies when combined with existing operations.

The total cash consideration, including assumed debt, is US$217 million. After accounting for anticipated asset sales of US$40 million, the net cost of the transaction is US$177 million. S.E. Johnson's 2002 financials showed sales of US$272 million and trading profit (EBIT) of US$18 million before depreciation.

S.E. Johnson's operations in northern Ohio, southeastern Michigan, and northeastern Indiana have a strong geographic synergy with CRH's existing U.S. Midwest businesses. It will be integrated into CRH's Shelly Group (Ohio) and Thompson-McCully (Michigan) entities, which were acquired in prior years.