8-K

CRH PUBLIC LTD CO 8-K Report (Jun 21, 2006)

Filed June 21, 2006For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced on June 19, 2006, that its US subsidiary, Oldcastle Materials, Inc., has entered into an exclusivity agreement with Ashland Inc. This agreement signals a potential acquisition of Ashland Paving And Construction, Inc. (APAC) by CRH. APAC is a significant player in the US construction materials market, specializing in aggregates and asphalt, with substantial operations across 14 states and generating approximately $2.8 billion in sales and $200 million in EBITDA in the twelve months ending March 2006. This potential acquisition represents a strategic move for CRH to expand its already robust US operations. CRH's US Materials division is a leading producer of asphalt and a major player in aggregates and ready-mixed concrete, operating in 32 states. The transaction, if it proceeds, will be subject to US regulatory review and board approvals from both CRH and Ashland. Investors should monitor further developments regarding this potential significant acquisition.

Key Highlights

  • 1CRH's US subsidiary, Oldcastle Materials, Inc., has signed an exclusivity agreement with Ashland Inc.
  • 2The agreement may lead to the acquisition of Ashland Paving And Construction, Inc. (APAC) by CRH.
  • 3APAC is a leading US aggregates, asphalt, and construction company with operations in 14 southern and mid-continent states.
  • 4APAC reported sales of $2.8 billion and EBITDA of approximately $200 million for the 12 months ending March 2006.
  • 5CRH's existing US Materials division is a top producer in asphalt and a significant player in aggregates and ready-mixed concrete.
  • 6The potential acquisition is subject to US regulatory review and board approvals.
  • 7This filing is made on Form 6-K, indicating it's a report of a foreign issuer.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce that CRH's US subsidiary, Oldcastle Materials, Inc., has entered into an exclusivity agreement with Ashland Inc. This agreement signifies a potential acquisition of Ashland Paving And Construction, Inc. (APAC) by CRH.

APAC (Ashland Paving And Construction, Inc.) is a major US company involved in aggregates, asphalt, and construction, with extensive operations across 14 states. It reported sales of $2.8 billion and EBITDA of approximately $200 million in the fiscal year ending March 2006. Its acquisition would significantly enhance CRH's existing US Materials division, which is already a leading player in the industry.

The exclusivity agreement is a preliminary step. The completion of any transaction is contingent upon further negotiations, US regulatory review, and approval by the Boards of Directors of both CRH and Ashland Inc. Investors should watch for updates on regulatory clearances and board decisions.

CRH's US Materials division is already a significant force in the market. It is the number one US asphalt producer, the fourth largest US aggregates producer, and a top 10 ready-mixed concrete player, operating across 32 US states.