CRH acquires $250 million of assets from CEMEX and terminates wider negotiations
30 November 2007
On 17 September, CRH plc, the international building materials group, announced that it was in negotiations with CEMEX S.A.B de C.V. (Cemex) regarding the possible acquisition of certain Cemex assets in the United States and Europe. Arising from these negotiations CRH has acquired the Cemex readymixed concrete and concrete block operations in Florida and the aggregates and readymixed concrete operations in Arizona required to be sold as a condition of the US Department of Justice approval for Cemex’s acquisition of the Rinker Group. The total cash consideration is approximately US$250 million (euro 170 million).
Negotiations with Cemex regarding a wider transaction involving additional assets have been terminated.
The Florida operations being acquired comprise 26 concrete plants and 6 block plants. The readymix business operates in five market areas – Tampa, Southwest Florida, Orlando, Jacksonville and the Florida Panhandle while the block business operates primarily in the Tampa/St. Petersburg and Fort Myers/Naples areas. In Arizona, CRH will acquire 2 quarries and 5 concrete locations principally in the Tucson area.
In the eleven months to end-November, CRH has completed acquisition initiatives totalling euro 2 billion.
Total spend in the first half of the year amounted to almost euro 1 billion comprising the acquisition of Swiss builders merchant Getaz Romang completed in May; the purchase of a 50% stake in Denizli Cement in Turkey and the buyout of the remaining 50% of Paver Systems in the US announced in April; the acquisition of Harbin Sanling Cement Company in China announced in February plus 31 other initiatives announced in the Development Strategy Update of 2 July.
To date in the second half a further euro 1 billion has been invested in acquisitions. This includes the August buyout of the remaining 55% of Cementbouw BV in the Netherlands; completion of four separate transactions by the Americas Materials Division as announced in September; the purchase of the Cemex assets described above in addition to a strong flow of traditional CRH development opportunities. Details of these latter transactions will be included in the Development Strategy Update scheduled for release on 3 January 2008 in conjunction with CRH’s Full Year 2007 Trading Update Statement.
Contact CRH at Dublin 404 1000 (+353 1 404 1000)
|Liam O’Mahony ||Chief Executive |
|Myles Lee ||Finance Director |
|Éimear O’Flynn ||Head of Investor Relations |
|Maeve Carton ||Group Controller |