13th Sep 2007 07:01
CRH PLC13 September 2007 N E W S R E L E A S E 13 September 2007 CRH'S AMERICAS MATERIALS DIVISION COMPLETES FOUR ACQUISITIONS FOR US$350 MILLION CRH plc, the international building materials group, announces four separateacquisitions by its Americas Materials Division for a total combined cashconsideration, including debt assumed, of US$350 million (euro 258 million).Intangible assets (largely goodwill) arising on these four transactions amountto approximately US$140 million. The combined businesses reported EBITDA ofUS$53 million in 2006 on sales of US$360 million. In early September, the Americas Materials Division acquired Conrad YelvingtonDistributors, Inc. ("CYDI") the largest rail distributor of aggregates in theSoutheast US. CYDI is headquartered in Daytona Beach, Florida, and handlesapproximately 10 million tons of materials through its network of 27 rail-serveddistribution terminals located throughout Florida and in Alabama, Mississippiand Michigan. CYDI leases over 1,800 railcars and owns 35 locomotives forrailcar movements, and most of its yards are strategically located in immediateproximity to large aggregates consumers. CYDI is a strong geographic andcomplementary fit with Americas Materials' APAC business (acquired in August2006), and also with CRH's extensive local Precast and Architectural Productsbusinesses in the Southeast US. This acquisition is a key step in furthering theintegration of CRH's Materials and Products operations in the important Floridamarket. The Materials Division's West region acquired two integrated aggregates,asphalt, readymixed concrete and paving/construction businesses during August:Eugene Sand & Gravel, based in Eugene, Oregon, and Cessford Construction, whichoperates in central and eastern Iowa and in west central Illinois. Thesebusinesses have combined aggregates reserves of approximately 160 million tonsand in 2006 produced 2.3 million tons of aggregates, 0.4 million tons of asphaltand 0.3 million cubic yards of readymixed concrete. Eugene Sand & Gravel is anexcellent fit with our existing operations in Oregon, and in particular with theEgge Sand & Gravel business which was acquired in October 2006. Cessfordrepresents a significant market expansion in Iowa . At the end of August, the Materials Division's Mid-Atlantic region acquiredMcMinn's Asphalt and Prospect Aggregates, a vertically integrated materialsbusiness based near Lancaster, Pennsylvania. From its network of two quarries,five asphalt plants and four concrete plants, McMinn's produces 1.7 million tonsof aggregates, 0.7 million tons of asphalt and 0.2 million cubic yards ofconcrete annually. McMinn's is an excellent geographic fit with our existingPennsy Supply operation in south-central Pennsylvania, adding approximately 170million of well-located reserves and providing a good growth platform forfurther vertically integrated expansion. Commenting of these acquisitions, Liam O'Mahony, Chief Executive of CRH said:"The recent acquisition of CYDI represents a major expansion of our materialsbusiness in Florida, adding a highly respected key player in the materialssupply chain with an extensive and efficient rail distribution network in thislarge and long-term growth market. CYDI is a superb fit with CRH's existingoperations in Florida, and should be an excellent development platform forfuture growth. The other three transactions are in keeping with our ongoingstrategy of adding strong, well-managed businesses with good market and reservepositions to our existing Materials operations across the United States." Contact CRH at Dublin 404 1000 (+353 1 404 1000)Liam O'Mahony, Chief ExecutiveMyles Lee, Finance DirectorEimear O'Flynn, Head of Investor RelationsMaeve Carton, Group Controller CRH plc, Belgard Castle , Clondalkin, Dublin 22, Ireland TELEPHONE +353.1.4041000 FAX +353.1.4041007 E-MAIL [email protected] WEBSITE www.crh.com Registered Office, 42 Fitzwilliam Square , Dublin 2, Ireland This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CRH