Summary
CRH plc announced on April 16, 2007, two strategic acquisitions totaling US$293 million in cash and assumed debt. These investments are aimed at expanding the company's reach in both its Europe Materials and Americas Products segments. The report details a 50% acquisition of Denizli Cement in Turkey, an integrated cement and readymixed concrete business, marking CRH's entry into the Turkish market. Concurrently, CRH exercised its option to acquire the remaining 50% of Paver Systems, LLC, a U.S.-based manufacturer of interlocking concrete pavers, solidifying its position in the growing Florida hardscapes market.
Key Highlights
- 1CRH plc acquired 50% of Denizli Cement in Turkey for an undisclosed amount as part of a joint venture, expanding into the Aegean region.
- 2Denizli Cement is an integrated business with a modern cement facility (1.8M tonnes clinker capacity) and 13 readymixed concrete plants, holding a market-leading position in its region.
- 3CRH acquired the remaining 50% stake in Paver Systems, LLC in Florida, consolidating full ownership after an initial 50% investment in 2004.
- 4Paver Systems is a leading U.S. manufacturer of interlocking concrete pavers with facilities in West Palm Beach, Tampa, and Orlando.
- 5The total cash consideration for both transactions, including debt assumed, was US$293 million (euro 225 million).
- 6Combined 2006 pro forma sales for both entities were US$223 million, with EBITDA of US$79 million.
- 7These acquisitions represent strategic steps to further develop CRH's Europe Materials and Americas Products divisions.
Frequently Asked Questions
The total cash consideration for both acquisitions, including assumed debt, was US$293 million. For the full year 2006, on a combined 100% basis, Denizli Cement and Paver Systems reported sales of US$223 million and EBITDA of US$79 million.
CRH is entering the Turkish market by acquiring a 50% stake in Denizli Cement. This move is part of CRH's strategy to expand its Europe Materials segment's presence in the Mediterranean Basin, capitalizing on Denizli's modern integrated cement and readymixed concrete operations and strong regional market position.
By acquiring the remaining 50% of Paver Systems, LLC, CRH gains full ownership of a leading manufacturer of interlocking concrete pavers in Florida. This consolidation is a planned step to strengthen CRH's position in the growing southeastern U.S. hardscapes market and further develops its Americas Products segment.
These transactions are described as important steps in the further development of CRH's Europe Materials and Americas Products activities, aligning with the group's strategy of establishing leadership positions in its core business segments and contributing to its long-term growth record.