8-K

CRH PUBLIC LTD CO 8-K Report (Jan 4, 2007)

Filed January 4, 2007For Securities:CRH

Summary

CRH Public Ltd Co. (CRH) announced a significant expansion of its acquisition strategy in the second half of 2006, with 31 new initiatives totaling approximately Euro 400 million. This robust acquisition activity, combined with earlier deals, brings CRH's full-year acquisition spend to a record Euro 2.1 billion. The report details these acquisitions across CRH's diverse divisions in Europe and the Americas, highlighting strategic bolt-on transactions and entry into new markets. These investments are expected to drive further growth across all of CRH's business segments. Of particular note is the acquisition of Ashland Paving & Construction (APAC) for US$1.3 billion (Euro 1.0 billion), which was the largest single transaction completed by the Group. The overall acquisition strategy in 2006 involved 69 concluded acquisitions, demonstrating CRH's commitment to expanding its global footprint and product offerings in the building materials sector. Investors can interpret this aggressive M&A activity as a strong signal of management's confidence in future growth prospects and their strategic intent to consolidate market positions.

Key Highlights

  • 1CRH announced 31 additional acquisition initiatives in H2 2006, totaling Euro 400 million.
  • 2Full-year 2006 acquisition spend reached a record Euro 2.1 billion.
  • 3The acquisition of Ashland Paving & Construction (APAC) for US$1.3 billion was the largest single transaction for CRH.
  • 4Total acquisitions in 2006 numbered 69, across various CRH divisions in Europe and the Americas.
  • 5Acquisitions were strategically focused on expanding existing operations ('bolt-on') and entering new markets and product segments.
  • 6Notable expansion occurred in Europe Materials (e.g., bitumen storage in Ireland, paving plants in Poland), Europe Products (entry into Italy, expansion in Germany, Netherlands, France, UK), and across multiple Americas divisions (Materials, Products, Distribution).

Frequently Asked Questions

CRH reported a record net acquisition spend of approximately Euro 2.1 billion for the full year 2006. This includes Euro 0.8 billion in the first half and approximately Euro 1.3 billion in the second half.

The acquisitions were aimed at driving further growth across all CRH divisions. They included strategic bolt-on transactions to expand existing operations in Europe and the Americas, as well as entering new markets and niche product sectors, such as concrete products in Italy and roller shutter systems in the Netherlands.

The acquisition of Ashland Paving & Construction (APAC) for US$1.3 billion (Euro 1.0 billion) was the largest single transaction completed by the Group in 2006.

The acquisitions are spread across CRH's operations in both Europe and the Americas. Significant activity is detailed for Europe Materials, Europe Products, Europe Distribution, Americas Materials, Americas Products, and Americas Distribution divisions.