16th Apr 2007 08:00
CRH PLC16 April 2007 N E W S R E L E A S E April 16 2007 CRH ANNOUNCES INVESTMENTS IN TURKEY AND THE US CRH plc, the international building materials group, announces two transactions,one in Turkey and one in the United States, completed for a total cashconsideration, including debt assumed, of US$293 million (euro 225 million). In Turkey, CRH has acquired 50% of Denizli Cement, an integrated cement andreadymixed concrete business, from Eren Holdings, a privately-owned industrialgroup. Under the terms of the joint venture agreement with Eren Holdings, CRHwill have joint management control of the business, which is based in the cityof Denizli in the Aegean region of south-western Turkey. Denizli has a moderncement facility with a clinker capacity of 1.8 million tonnes and is the marketleader in its region. The company has limestone reserves of more than 100million tonnes and produced 1.8 million tonnes of cement in 2006. Denizli alsooperates a network of 13 readymixed concrete plants in Denizli and thesurrounding area, which produced 1.3 million cubic metres of concrete in 2006. In Florida, CRH has exercised its option to buy out the remaining 50% stake inPaver Systems, LLC. CRH acquired an initial 50% of Paver Systems in January2004 and has fully consolidated its results since then, deducting a 50% minorityinterest in arriving at Group profit after tax and earnings per share. PaverSystems is a leading manufacturer of interlocking concrete pavers and, withthree facilities in West Palm Beach, Tampa and Orlando, the company iswell-positioned to benefit from the continuing strong professional hardscapesmarket in Florida. Combined 2006 results on a 100% basis for Denizli and Paver Systems amounted toUS$223 million in sales and US$79 million in profit before interest, tax,depreciation and amortisation (EBITDA). Commenting on the transactions, CRH Chief Executive Liam O'Mahony said: "Overthe past thirty years CRH has established leadership positions in three distinctsegments - materials, products and distribution - in Europe and the Americas.This balanced portfolio of businesses has been the foundation for the Group'sexceptional long-term performance and growth record. The two transactionsannounced today are important steps in the further development of our EuropeMaterials and Americas Products activities. Denizli, a modern verticallyintegrated cement and readymixed concrete business with excellent reserves and astrong management team, is CRH's first investment in Turkey . It also representsa further step in the expansion of Europe Materials presence in theMediterranean Basin. Since the initial 50% investment in Paver Systems in 2004,this business has been an exceptionally strong performer for Americas Productsin the expanding Florida hardscapes market, and a key component of its overallstrategy for the southeastern United States. The buyout, as planned, of theremaining 50% of Paver Systems further consolidates CRH's position in thisimportant market." 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 +353.1.4041007E-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:
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