8-K

CRH PUBLIC LTD CO 8-K Report (Jan 6, 2009)

Filed January 6, 2009For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced in this Form 6-K filing that it completed 16 acquisitions and investments totaling Euro 273 million during the second half of 2008. This strategic move, despite a deteriorating economic environment, brings CRH's full-year acquisition spend to approximately Euro 1 billion across 53 deals. The company's Chief Executive, Myles Lee, emphasized a deliberate curtailment of development activity in the latter half of the year, focusing only on opportunities offering compelling value and exceptional strategic fit. The reported acquisitions are categorized across CRH's Europe Materials, Europe Distribution, Americas Materials, and Americas Products segments, with the largest single investment being a 34.8% stake in a French builders merchanting business.

Key Highlights

  • 1CRH announced Euro 273 million in acquisitions and investments during H2 2008, bringing the full-year total to approximately Euro 1 billion across 53 deals.
  • 2The company deliberately curtailed development activity in H2 2008 due to a deteriorating economic environment.
  • 3The largest single investment was a Euro 222 million acquisition within Europe Distribution, including a 34.8% stake in a French builders merchanting business (Trialis).
  • 4Acquisitions were made across all four business segments: Europe Materials (Euro 8 million), Europe Distribution (Euro 222 million), Americas Materials (Euro 33 million), and Americas Products (Euro 10 million).
  • 5The H2 2008 acquisitions are expected to generate incremental annual sales of Euro 10 million (Europe Materials), Euro 128 million (Europe Distribution), US$49 million (Americas Materials), and US$29 million (Americas Products).
  • 6Management's focus has shifted to operational delivery, with new development activity limited to strategically critical and value-driven opportunities.

Frequently Asked Questions

CRH's total acquisition and investment spend for the full year 2008 was approximately Euro 1 billion, with Euro 273 million of that occurring in the second half of the year.

CRH deliberately curtailed development activity in the second half of 2008 due to a deteriorating economic environment. The company prioritized opportunities that offered compelling value and an exceptional strategic fit.

The most significant transaction was within the Europe Distribution segment, which included a Euro 222 million investment. This comprised a 34.8% stake in Trialis, a French builders merchanting business with 190 branches and annual sales of approximately Euro 700 million, along with other acquisitions adding 33 branches.

The acquisitions were described as 'bolt-on' or additions to existing businesses, aimed at expanding and strengthening CRH's market presence and leadership positions in various operations across Europe and the Americas.