8-K

CRH PUBLIC LTD CO 8-K Report (Jul 7, 2010)

Filed July 7, 2010For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed an 8-K on July 7, 2010, reporting on its development strategy and investment activities for the first half of 2010. The company announced a total of 13 acquisitions and investments amounting to €236 million. These initiatives underscore CRH's strategic focus on value-adding investments within its existing markets, emphasizing bolt-on opportunities that enhance geographic reach and operational capabilities. Specifically, CRH invested €74 million in Europe Materials, which included four acquisitions, an equity investment in Yatai Cement for projects in China, and two capital projects. The Americas Materials segment saw significant investment with €162 million allocated to nine acquisitions and one major capital project for a new quarry. CEO Myles Lee highlighted that while the company is seeing a good flow of opportunities, it maintains a patient approach due to the challenging market backdrop, but is well-positioned for future growth as market visibility improves. The company also provided an update on the ongoing disposal process for its European Insulation and Climate Control businesses.

Key Highlights

  • 1CRH announced €236 million in acquisitions and development initiatives during the first half of 2010.
  • 2The company completed 13 acquisitions totaling €133 million and invested €19 million in Yatai Cement's expansion projects in China.
  • 3Three new capital projects were initiated, with a total expenditure of €84 million over three years.
  • 4Europe Materials invested €74 million, including acquisitions in the Netherlands, the UK, Portugal, and Poland, plus an equity investment in China and capital projects in Poland and India.
  • 5Americas Materials invested €162 million, comprising nine bolt-on acquisitions and a significant capital project for a new quarry in Georgia.
  • 6CEO Myles Lee expressed confidence in CRH's strategy of pursuing value-adding investments in existing markets and its preparedness for future transaction flow.
  • 7The disposal process for CRH's European Insulation and Climate Control businesses is progressing well.

Frequently Asked Questions

CRH announced a total of €236 million in acquisitions and development initiatives during the first half of 2010.

CRH focused its acquisition efforts on bolt-on opportunities within its existing markets, primarily in Europe and the Americas. Specific areas included readymixed concrete and cement import terminals in the UK and Netherlands, quarrying in Portugal, aggregates and asphalt businesses in the US, and investments in Chinese cement production.

CEO Myles Lee indicated that CRH is seeing a good flow of bolt-on acquisition opportunities that fit its strategy of value-adding investments. While maintaining a patient approach due to market challenges, the company is well-positioned to execute transactions as trading visibility improves. The disposal of its European Insulation and Climate Control businesses is also advancing well.

Three capital projects were commenced, with a total expenditure of €84 million over three years. These include an alternative fuel feeding system for a Polish cement plant, a captive power plant for a joint venture in India, and the development of a large new quarry in Georgia, USA.