13th Mar 2008 07:00
CRH PLC13 March 2008 N E W S R E L E A S E 13 March 2008 CRH REACHES AGREEMENT TO ACQUIRE MAJOR US CONCRETE PRODUCTS BUSINESS CRH plc, the international building materials group, announced today that it hasreached agreement to acquire the Pavestone Group LP for an upfront cashconsideration, including debt assumed, of US$540 million (euro 348 million),plus deferred consideration contingent on future increases in profitability.Completion of the transaction is subject to the granting of the requiredregulatory approvals. Pavestone is headquartered in Dallas, Texas and operates a national network of18 concrete paver plants at 16 locations across the United States. In additionit has decorative stone bagging plants at 14 of these locations. The groupcurrently employs 1,300 people across its operations. Approximately 70% ofPavestone's sales are in the retail homecenter channel, with the remaining salessplit evenly between the commercial and distributor channels. Adjusted EBITDAfor 2007 amounted to approximately US$65 million on sales of US$368 million. Pavestone's operations complement the existing retail business of CRH'sArchitectural Products Group (APG), which operates from 30 paver plants and 11bagging plants in 37 states, with good opportunities for synergies. Acquisitionof Pavestone offers APG a broader national footprint in concrete landscapingproducts (pavers, retaining wall products and patio products, collectivelydescribed as hardscapes) and bagged stone with excellent modern productionfacilities and an experienced workforce. In a comment, CRH Chief Executive Liam O'Mahony said "The proposed acquisitionof Pavestone represents an opportunity to build on our success in developing APGinto the leading North American supplier of multiple landscaping products,enabling profitable growth and an improved ability to service our coreprofessional and DIY hardscape markets." 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, IrelandTELEPHONE +353.1.4041000 FAX +353.1.4041007E-MAIL [email protected] WEBSITE www.crh.comRegistered 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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