8-K

CRH PUBLIC LTD CO 8-K Report (May 2, 2006)

Filed May 2, 2006For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced on May 2, 2006, a significant strategic acquisition of the Halfen-Deha Group (Halfen), a leading European producer of metal construction accessories. This acquisition, for a cash consideration of approximately EUR 170 million (including debt), is expected to significantly bolster CRH's position in the construction materials sector. Halfen's product portfolio, which includes anchoring technology, facade fixing systems, and transport anchor systems, is utilized in commercial, civil engineering, and residential construction, with a strong presence in both precast and on-site applications. The acquisition is projected to create market leadership for CRH in the European construction accessories sector, with combined sales exceeding EUR 330 million. This move aligns with CRH's strategy to expand its geographical reach and product offerings within its existing business segments.

Key Highlights

  • 1CRH acquires Halfen-Deha Group (Halfen), a leading European producer of metal construction accessories, for approximately EUR 170 million in cash and debt.
  • 2The acquisition is expected to make CRH the market leader in the European construction accessories sector with combined sales over EUR 330 million.
  • 3Halfen generated EUR 22 million in EBITDA on EUR 190 million in sales in 2005.
  • 4Halfen operates in 16 countries with six production sites and a sales network covering 42 countries.
  • 5The acquisition strengthens CRH's existing Construction Accessories business and expands its distribution network.
  • 6Halfen's products are used in commercial, civil engineering, and residential construction, primarily in new-build non-residential and infrastructure sectors.
  • 7This acquisition complements CRH's recent purchase of MMI, a US-based distributor of Halfen products.

Frequently Asked Questions

CRH acquired Halfen for approximately EUR 170 million in cash and debt. Halfen's 2005 performance showed EUR 22 million in EBITDA on EUR 190 million in sales. The acquisition is expected to position CRH as the European market leader in construction accessories, with combined sales exceeding EUR 330 million, indicating a significant revenue and market share increase.

The acquisition of Halfen aligns with CRH's strategy to strengthen its existing Construction Accessories business and expand its international presence. By integrating Halfen's strong brand, product quality, and extensive distribution network, CRH aims to achieve market leadership in Europe and create synergistic opportunities, particularly with its recently acquired MMI business in the United States.

Halfen specializes in metal construction accessories, including anchoring technology, facade fixing systems, reinforcement accessories, transport anchor systems, and framing systems. These products are used in commercial, civil engineering, and residential construction, catering to both precast and on-site applications, with a focus on new-build non-residential and infrastructure projects.

Halfen has a significant international presence, employing approximately 1,300 people across 16 countries. It operates six production sites, primarily in Germany, Poland, the Netherlands, Sweden, and Malaysia, and its products are marketed through a sales network that spans 42 countries worldwide.