8-K

CRH PUBLIC LTD CO 8-K Report (Jan 5, 2011)

Filed January 5, 2011For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed an 8-K on January 5, 2011, detailing its second-half 2010 development initiatives. The report highlights a significant step-up in development activity, with €367 million invested in 17 initiatives during H2 2010. This brings the total acquisition and investment spend for the full year 2010 to approximately €536 million, comprising 28 "bolt-on" acquisitions. These strategic moves are aimed at expanding CRH's materials footprint, particularly in Switzerland and the United States, and substantially enhancing its presence in the German distribution market. The acquired businesses are expected to contribute incremental annualised sales of €0.8 billion, with approximately €0.2 billion reflected in the 2010 results.

Key Highlights

  • 1CRH announced €367 million in development initiatives for the second half of 2010, significantly increasing development pace.
  • 2Total acquisition and investment spend for 2010 reached approximately €536 million, including 28 bolt-on acquisitions.
  • 3These acquisitions are projected to add €0.8 billion in incremental annualised sales.
  • 4Europe Materials Division invested €84 million, acquiring an aggregates and ready-mixed concrete business in Switzerland and investing further in associate Yatai Cement in China.
  • 5Europe Products & Distribution invested €151 million, acquiring a sanitary, heating, and plumbing (SHAP) business in Belgium and increasing stake in German distributor Bauking to 98%.
  • 6Americas Materials Division completed nine acquisitions for €108 million (US$143 million), adding approximately 336 million tonnes of aggregates reserves across the United States.
  • 7Americas Products & Distribution completed three acquisitions for €24 million (US$33 million), expanding its product offerings and distribution network in the Midwest and California.

Frequently Asked Questions

CRH's total acquisition and investment spend for the full year 2010 was approximately €536 million. This includes €367 million in development initiatives undertaken in the second half of 2010 and €169 million from the first half of the year, along with deferred acquisition payments.

The acquisitions completed in 2010 are expected to contribute incremental annualised sales of approximately €0.8 billion. Of this, about €0.2 billion was anticipated to be reflected in CRH's 2010 financial results.

The Europe Products & Distribution division saw the largest investment in H2 2010 at €151 million, primarily driven by the acquisition of a SHAP business in Belgium and the buyout of the Bauking distribution joint venture in Germany. The Americas Materials division also made significant investments totaling €108 million.

The acquisitions are designed to strategically expand CRH's materials footprint, particularly in markets like Switzerland and the United States. They also aim to substantially enhance CRH's presence in key distribution markets, such as Germany, and strengthen its position in specific product segments like SHAP (sanitary, heating, and plumbing materials).