8-K

CRH PUBLIC LTD CO 8-K Report (Jul 3, 2012)

Filed July 3, 2012For Securities:CRH

Summary

CRH Public Ltd Co (CRH) filed an 8-K on July 3, 2012, providing an update on its development strategy and first-half 2012 activities. The company announced a total development spend of approximately €0.25 billion for the first half of the year, comprising 18 acquisition and investment initiatives. This activity demonstrates CRH's ongoing commitment to strategic growth through acquisitions that strengthen its regional presence, enhance vertical integration, and bolster its reserve positions. The report details specific transactions across CRH's Europe and Americas divisions. In Europe, €155 million was spent on acquisitions including a significant addition to the Shutters & Awnings business in Germany, expansion of the Construction Accessories business in Southeast Asia and the UK, and the addition of builders' merchant outlets in the Netherlands. The Americas division invested €89 million in 13 acquisitions, primarily in its Materials segment to add significant aggregate reserves and expand its Architectural Products business with new plants and strengthened masonry operations. The company also provided an update on divestments, noting proceeds of €0.7 billion in the first half, including the sale of its stake in Secil and the disposal of Magnetic Autocontrol.

Key Highlights

  • 1CRH announced first-half 2012 development spend of €0.25 billion across 18 acquisition and investment initiatives.
  • 2Europe divisions accounted for €155 million in development spend, including acquisitions in Shutters & Awnings (Germany), Construction Accessories (Southeast Asia, UK), and Distribution (Netherlands).
  • 3Americas divisions spent €89 million on 13 acquisitions, focusing on Materials (adding 47 million tonnes of reserves) and Architectural Products (new plants in Texas, Louisiana, Florida).
  • 4The company invested further in its associate in China, Yatai Building Materials, to support cement production capacity expansion.
  • 5Divestment proceeds for the first half of 2012 reached €0.7 billion, including the sale of a stake in Secil and Magnetic Autocontrol.
  • 6The acquisitions are described as 'bolt-on', aimed at filling regional and product gaps, enhancing vertical integration, and strengthening reserve positions.
  • 7Total development spend over the past 12 months was approximately €0.7 billion.

Frequently Asked Questions

CRH announced a total development spend of approximately €0.25 billion for the first half of 2012, covering 18 acquisition and investment initiatives.

In Europe, the €155 million spend included a significant addition to the Shutters & Awnings business in Germany, two acquisitions for the Construction Accessories business expanding its footprint in Southeast Asia and strengthening its UK operations, and the addition of six builders' merchant outlets in the Netherlands by the Distribution business. There was also a further investment in its Materials associate in China.

The Americas divisions spent €89 million on 13 acquisitions. The Materials segment completed ten bolt-on transactions to add 47 million tonnes of strategically located aggregates reserves. The Architectural Products business expanded its national packaged products operations with two acquisitions and strengthened its masonry operations.

CRH reported divestment proceeds of €0.7 billion in the first half of 2012. This includes the previously announced divestment of its 49% stake in Portuguese cement producer Secil and the disposal of Magnetic Autocontrol.