8-K

CRH PUBLIC LTD CO 8-K Report (Jul 7, 2011)

Filed July 7, 2011For Securities:CRH

Summary

CRH plc announced its H1 2011 Development Strategy Update, detailing acquisition and investment initiatives totaling approximately €0.2 billion. These activities were spread across its various operating segments, with a significant portion directed towards the Americas Materials division. The update also highlights the agreement to acquire the VVM Group in Belgium, a move expected to bolster CRH's presence in the European cement and concrete markets, subject to regulatory approval. Furthermore, CRH reported strong progress on its portfolio management strategy, completing divestments that generated approximately €345 million in proceeds for reinvestment. This strategic approach indicates CRH's focus on strengthening core businesses and capitalizing on attractive growth opportunities while maintaining a robust balance sheet. The company expressed confidence in its ongoing acquisition pipeline and its capacity to pursue value-driven investments.

Key Highlights

  • 1CRH executed 21 acquisition and investment initiatives totaling €0.2 billion in H1 2011.
  • 2Significant investment was made in Americas Materials (€98 million) and Europe Materials (€40 million).
  • 3Agreement reached to acquire VVM Group in Belgium, subject to regulatory approval.
  • 4Divestments in H1 2011 generated approximately €345 million in proceeds for reinvestment.
  • 5Acquisitions focused on strengthening market positions, adding reserves, and expanding distribution networks.
  • 6The company highlighted a good pipeline of potential acquisitions and a strong balance sheet.
  • 7CEO Myles Lee noted continued development activity across all six operating segments.

Frequently Asked Questions

CRH undertook 21 acquisition and investment initiatives totaling approximately €0.2 billion in the first half of 2011. With the potential acquisition of the VVM Group, the cumulative development spend would reach approximately €0.3 billion.

The Americas Materials division received the largest portion of the investment, totaling €98 million (US$137 million). The Europe Materials division followed with €40 million in acquisitions and investments.

The agreement to acquire the VVM Group is an important strategic opportunity for CRH's existing Cementbouw cement trading and readymixed concrete business in the Benelux. It also complements the company's Products businesses in the region and would add significant capacity with two cement grinding mills and two readymixed concrete plants in Belgium.

Yes, CRH completed a number of divestments, including Insulation and Climate Control businesses and its stake in the Trialis distribution business. These divestments generated approximately €345 million in proceeds, which are available for reinvestment.