8-K

CRH PUBLIC LTD CO 8-K Report (Mar 13, 2008)

Filed March 13, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced on March 13, 2008, its agreement to acquire the Pavestone Group LP, a significant U.S. concrete products business. The acquisition is structured with an upfront cash payment of $540 million, including assumed debt, and additional deferred consideration tied to future profit increases. This strategic move is expected to bolster CRH's Architectural Products Group (APG) by expanding its national footprint in concrete landscaping products, commonly known as hardscapes, and bagged stone. The acquisition is subject to regulatory approvals and is anticipated to create synergies with CRH's existing retail operations. Pavestone, with 18 concrete paver plants and 14 decorative stone bagging plants across the U.S., generated approximately $65 million in Adjusted EBITDA on $368 million in sales in 2007. The transaction aligns with CRH's objective to strengthen its leadership position in the North American landscaping products market and enhance its service capabilities for professional and DIY customers.

Key Highlights

  • 1CRH has agreed to acquire The Pavestone Group LP for $540 million upfront cash (including debt) plus deferred consideration.
  • 2The acquisition significantly expands CRH's Architectural Products Group (APG) in the U.S. concrete landscaping products (hardscapes) market.
  • 3Pavestone operates a national network of 18 concrete paver plants and 14 decorative stone bagging plants.
  • 4In 2007, Pavestone reported Adjusted EBITDA of approximately $65 million on sales of $368 million.
  • 5The deal is expected to create synergies with CRH's existing retail homecenter channel business.
  • 6Completion of the acquisition is contingent upon obtaining necessary regulatory approvals.
  • 7The acquisition aims to enhance CRH's leadership in North American landscaping products and improve customer service.

Frequently Asked Questions

The acquisition of Pavestone Group LP has an upfront cash consideration, including debt assumed, of US$540 million. There is also a deferred consideration component that is contingent on future increases in profitability.

Pavestone Group LP is a major U.S. concrete products business. It operates a national network of 18 concrete paver plants and 14 decorative stone bagging plants across the United States, specializing in concrete landscaping products (hardscapes) and bagged stone.

The acquisition of Pavestone will expand CRH's Architectural Products Group (APG) with a broader national footprint in concrete landscaping products and bagged stone. It is expected to create synergies with CRH's existing retail business and improve its ability to service core professional and DIY hardscape markets, thereby strengthening its leadership position in North America.

For the year 2007, Pavestone reported Adjusted EBITDA of approximately US$65 million on sales of US$368 million.