26th Apr 2006 12:00
CRH PLC26 April 2006 26 April 2006 CRH ACQUIRES MAJOR NEW PLATFORM IN THE UNITED STATES CRH plc, the international building materials group, announces that it hasreached agreement to acquire MMI Products, Inc. (MMI), a leading USmanufacturer and distributor of building products used in the non-residential,residential and infrastructure construction sectors, for a cash consideration,including debt acquired, of approximately US$350 million. Completion of thistransaction is expected by the end of this week. Intangible assets, primarilygoodwill, arising on this deal amount to approximately US$115 million. Headquartered in Houston, Texas, MMI's operations fall into three distinctproduct segments, encompassing fencing products, welded wire reinforcement andconstruction accessories, in each of which MMI is a leader in its industrysector. Merchants Metals manufactures and distributes a variety of fencing andsecurity products. Ivy Steel and Wire produces welded wire reinforcement usedprimarily in non-residential and infrastructure applications. The thirdbusiness, Meadow-Burke, is a major manufacturer of construction accessories,offering over 2,000 specialised products also used primarily in non-residentialand non-building concrete construction. Approximately 70% of total MMI sales arefor non-residential applications. In 2005, profit before interest, tax, depreciation, amortisation and goodwillimpairment (EBITDA) for the combined MMI businesses acquired amounted to US$50million on sales of US$721 million. MMI employs approximately 2,500 people and operates an extensive andwell-positioned network of 19 principal manufacturing facilities strategicallylocated throughout the US and Mexico together with 62 distribution centres in 30US states. The acquisition of MMI represents a major new development for CRH. MMI will bethe foundation of a fifth product group for CRH's Americas Products &Distribution Division, and represents a new platform for expansion in productsegments which offer significant organic and development growth opportunities.MMI also provides CRH with US exposure to construction accessories and fencing,businesses in which CRH's Europe Products & Distribution Division already haswell-established and expanding positions and which offer the potential forsignificant joint initiatives and co-operation. Commenting on the transaction, Liam O'Mahony, Chief Executive of CRH said: "This is a very exciting development for CRH. We are delighted to have theopportunity to acquire MMI, a business with a reputation for excellence inproduct quality and customer service. MMI will be a valuable addition to ourbusinesses in North America. The transaction represents a unique opportunity forfuture development of CRH's operations within the US, in sectors which havealready proved successful for the Group in Europe." 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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