8-K

CRH PUBLIC LTD CO 8-K Report (Jan 7, 2014)

Filed January 7, 2014For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced on January 7, 2014, its development strategy update for the second half of 2013. The company highlighted significant acquisition and investment activity, with a total spend of approximately €0.69 billion for the full year 2013. This included €0.22 billion in the second half of the year, supporting strategic growth and consolidation in key markets. The reported transactions were primarily focused on strengthening CRH's positions in cement operations in growing markets like Ukraine, India, and China, as well as expanding its aggregates business in the United States through several bolt-on acquisitions. Additionally, the Distribution segment saw network expansion in France and the United States, aiming to capitalize on resilient repair, maintenance, and improvement (RMI) spending in developed economies.

Key Highlights

  • 1CRH invested approximately €0.69 billion in acquisitions and development activity throughout 2013, with €0.22 billion spent in the second half of the year.
  • 2The company strengthened its cement operations in high-growth markets, including Ukraine, India, and China, with strategic acquisitions.
  • 3In the Americas Materials segment, CRH completed three bolt-on acquisitions in the United States, enhancing its aggregates positions in Colorado, Mississippi, and Oregon.
  • 4The Distribution segment expanded its network by acquiring four branches in Northern France and five branches in Texas, Florida, and Georgia in the United States.
  • 5The acquisition of Zhongbei Cement Company in China by CRH's associate, Yatai Group Building Materials, further solidified its market leadership in Northeast China.
  • 6The reported acquisitions are expected to contribute incremental sales, with specific figures noted for the Americas Materials (€21 million) and Distribution (€11 million in France, €30 million in the US) segments.
  • 7CRH's strategy emphasizes establishing leading positions in attractive markets and leveraging synergies from integrated businesses and expanded networks.

Frequently Asked Questions

CRH's total development activity for 2013 amounted to approximately €0.69 billion.

The company focused on high-growth markets in Asia (Ukraine, India, China) for its cement operations and expanded its aggregates business in the United States. The Distribution segment also saw growth in France and the US.

In the Americas Materials segment, CRH acquired selected assets including readymixed concrete plants, aggregates quarries, asphalt plants, and replacement reserves, strengthening its vertically integrated business and construction footprint.

Acquisitions in the Distribution segment added new branches for builders' merchanting in Northern France and expanded its network of roofing distributors and suppliers of gypsum wallboard, metal studs, and roofing products in the United States, aiming to improve service networks and operational synergies.