8-K

CRH PUBLIC LTD CO 8-K Report (Jan 5, 2010)

Filed January 5, 2010For Securities:CRH

Summary

CRH plc announced its second-half 2009 development initiatives, totaling €168 million, bringing the full-year development spend to approximately €450 million. This includes a mix of acquisitions and investments across its European and Americas Materials divisions. The company highlights significant strategic additions in the Americas, particularly in aggregates reserves, which accounted for over 80% of the second-half development spend. These acquisitions are expected to yield substantial operating and purchasing synergies, positioning CRH to capitalize on future growth opportunities. The investments in Europe Materials include an increased stake in a Polish sand-lime brick business and further expansion by its associate Yatai Cement Group in northeastern China. In the Americas, the focus was on bolt-on acquisitions in the US, aimed at expanding existing operations and securing substantial aggregate reserves in key regions like Missouri, Texas, and Utah. These transactions are projected to deliver incremental annualised sales and EBITDA, reflecting CRH's continued commitment to strategic growth despite the prevailing economic conditions.

Key Highlights

  • 1CRH plc invested €168 million in 10 acquisitions and investments during H2 2009.
  • 2Total development spend for 2009 reached approximately €450 million, including H2 investments, prior acquisitions, and deferred payments.
  • 3Americas Materials Division accounted for the majority of H2 2009 development spend (€146 million) through seven acquisitions.
  • 4Key acquisitions in the Americas focused on expanding aggregates reserves (380 million tonnes) and asphalt/construction businesses in Missouri, Texas, and Utah.
  • 5Europe Materials Division made one acquisition and two investments totaling €22 million, including an increased stake in a Polish sand-lime brick producer and further investments in China's Yatai Cement Group.
  • 6Americas Materials acquisitions are expected to generate incremental annualised sales of US$200 million and EBITDA of US$52 million.
  • 7CRH CEO Myles Lee stated the company is well-positioned to capitalize on future development prospects.

Frequently Asked Questions

CRH's total development outlay for 2009 amounted to approximately €450 million. This figure includes six bolt-on acquisitions in the first half of 2009, the Yatai Cement Group transaction announced in January 2009, deferred acquisition payments from prior years, and the 10 acquisitions and investments totaling €168 million announced for the second half of 2009.

The Americas Materials Division was the primary focus for investment in the second half of 2009, accounting for over 80% of the €168 million development spend. Specifically, four acquisitions in Missouri, Texas, and Utah represented strategic additions to existing operations.

The acquisitions in the Americas Materials Division are primarily aimed at expanding CRH's aggregates reserves, which totaled 380 million tonnes from these seven transactions. These deals are expected to offer significant opportunities for operating and purchasing synergies, enhance geographic reach, and strengthen market positions in key growth areas.

In the second half of 2009, CRH's Europe Materials division invested €22 million. This included increasing its stake in Grupa Silikaty, a leading sand-lime brick producer in Poland, and two further investments by its associate Yatai Cement Group to expand its presence in northeastern China.