CRH to acquire assets of US Aggregates, Inc. in Utah and Alabama
20 May 2002
On March 12, 2002, CRH plc, the international building materials group, announced that its Materials Division in the Americas, Oldcastle Materials Group, had reached agreement with US Aggregates, Inc. (USAI) to acquire its operations in Utah, Arizona, Nevada, Tennessee and Alabama for a cash consideration of US$140 million (euro 153.8 million).
As an initial step in the sale process, USAI filed a voluntary petition for reorganisation under Chapter 11 of the US Bankruptcy Code on March 11, 2002. Accordingly, the proposed sale to Oldcastle was subject to approval by the US Bankruptcy Court in Nevada. This has now been received and the transaction is expected to be completed on May 29, 2002.
Since March, Oldcastle Materials has reached agreement to dispose of certain USAI operations which are non-core to CRH. These transactions are also scheduled to close on May 29, 2002. The USAI assets being retained by Oldcastle comprise USAI’s fully integrated construction materials business in Utah and a major quarry in Birmingham, Alabama. The net cash cost to Oldcastle Materials for these retained businesses is US$74 million (euro 81.3 million).
On a combined basis in 2001, the retained operations sold 6.1 million tons of aggregates, 1.1 million tons of asphalt and 0.2 million cubic yards of readymixed concrete with total sales revenue of US$76 million (euro 83.5 million).
Commenting on this transaction, Tom Hill, CEO of Oldcastle Materials Group, said:
"The USAI deal achieves a primary objective of the Materials Division to further expand its operations in the Mountain region. In particular, the deal augments production capacity to serve the ever-growing Salt Lake City area and extends the Division’s activities into the attractive Cedar City / St. George region in southern Utah. We expect to enhance historical profitability through the elimination of duplicate costs and the realisation of greater efficiencies in purchasing, production and transport. The transaction also provides a major quarry in the city of Birmingham, Alabama, Oldcastle Materials’ first location in the southeast."
Contact: +353 (0) 1 404 1000
|Liam O’Mahony ||Chief Executive |
|Harry Sheridan ||Finance Director |
|Myles Lee ||General Manager - Finance |
|Tom Hill ||CEO Oldcastle Materials Group |