8-K

CRH PUBLIC LTD CO 8-K Report (Sep 14, 2007)

Filed September 14, 2007For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed an 8-K report on September 14, 2007, detailing significant strategic acquisitions made by its Americas Materials Division. The company announced the completion of four separate acquisitions for a total of US$350 million, including assumed debt. These transactions represent a substantial investment and expansion of CRH's building materials operations in the United States, particularly in key growth markets like Florida and the broader Southeast region. The acquired businesses are expected to enhance CRH's market position, expand its reserves, and integrate well with its existing operations, contributing to future growth and vertical integration. The report highlights the acquisition of Conrad Yelvington Distributors, Inc. (CYDI), a major rail distributor of aggregates in the Southeast US, which CRH views as a crucial step in integrating its materials and products operations in Florida. Additionally, acquisitions of Eugene Sand & Gravel and Cessford Construction in the West region, along with McMinn's Asphalt and Prospect Aggregates in the Mid-Atlantic region, further bolster CRH's aggregates, asphalt, and concrete capabilities. These moves align with CRH's ongoing strategy of acquiring strong, well-managed businesses with solid market presence and resource positions.

Key Highlights

  • 1CRH's Americas Materials Division completed four acquisitions for a total of US$350 million (including debt assumed).
  • 2The acquired businesses reported a combined EBITDA of US$53 million on sales of US$360 million in 2006.
  • 3Acquisition of Conrad Yelvington Distributors, Inc. (CYDI), a key rail distributor of aggregates in the Southeast US, represents a major expansion in Florida.
  • 4CYDI brings a network of 27 rail-served distribution terminals and significant material handling capacity.
  • 5The acquisitions of Eugene Sand & Gravel and Cessford Construction expand CRH's aggregates, asphalt, and concrete operations in the Western US (Oregon, Iowa, Illinois).
  • 6McMinn's Asphalt and Prospect Aggregates acquisition strengthens CRH's vertically integrated materials business in Pennsylvania.
  • 7These acquisitions are consistent with CRH's strategy of adding strong, well-managed businesses with good market and reserve positions in the US.

Frequently Asked Questions

The total combined cash consideration for the four acquisitions, including debt assumed, is US$350 million (approximately euro 258 million).

The acquired companies are Conrad Yelvington Distributors, Inc. (CYDI), Eugene Sand & Gravel, Cessford Construction, and McMinn's Asphalt and Prospect Aggregates.

The acquisitions are aimed at expanding CRH's market presence in key growth areas within the United States, particularly in aggregates, asphalt, and concrete. They enhance CRH's existing operations, provide access to significant reserves, and further the company's strategy of acquiring strong, well-managed businesses for vertical integration and future growth.

In 2006, the combined businesses reported sales of US$360 million and an EBITDA of US$53 million. The intangible assets, primarily goodwill, arising from these transactions are approximately US$140 million.