CRH's Americas Materials Division completes four acquisitions for US$350 Million
13 September 2007
CRH plc, the international building materials group, announces four separate acquisitions by its Americas Materials Division for a total combined cash consideration, including debt assumed, of US$350 million (euro 258 million). Intangible assets (largely goodwill) arising on these four transactions amount to approximately US$140 million. The combined businesses reported EBITDA of US$53 million in 2006 on sales of US$360 million.
In early September, the Americas Materials Division acquired Conrad Yelvington Distributors, Inc. ("CYDI") the largest rail distributor of aggregates in the Southeast US. CYDI is headquartered in Daytona Beach, Florida, and handles approximately 10 million tons of materials through its network of 27 rail-served distribution terminals located throughout Florida and in Alabama, Mississippi and Michigan. CYDI leases over 1,800 railcars and owns 35 locomotives for railcar movements, and most of its yards are strategically located in immediate proximity to large aggregates consumers. CYDI is a strong geographic and complementary fit with Americas Materials' APAC business (acquired in August 2006), and also with CRH's extensive local Precast and Architectural Products businesses in the Southeast US. This acquisition is a key step in furthering the integration of CRH's Materials and Products operations in the important Florida market.
The Materials Division's West region acquired two integrated aggregates, asphalt, readymixed concrete and paving/construction businesses during August: Eugene Sand & Gravel, based in Eugene, Oregon, and Cessford Construction, which operates in central and eastern Iowa and in west central Illinois. These businesses have combined aggregates reserves of approximately 160 million tons and in 2006 produced 2.3 million tons of aggregates, 0.4 million tons of asphalt and 0.3 million cubic yards of readymixed concrete. Eugene Sand & Gravel is an excellent fit with our existing operations in Oregon, and in particular with the Egge Sand & Gravel business which was acquired in October 2006. Cessford represents a significant market expansion in Iowa.
At the end of August, the Materials Division's Mid-Atlantic region acquired McMinn's Asphalt and Prospect Aggregates, a vertically integrated materials business based near Lancaster, Pennsylvania. From its network of two quarries, five asphalt plants and four concrete plants, McMinn's produces 1.7 million tons of aggregates, 0.7 million tons of asphalt and 0.2 million cubic yards of concrete annually. McMinn's is an excellent geographic fit with our existing Pennsy Supply operation in south-central Pennsylvania, adding approximately 170 million of well-located reserves and providing a good growth platform for further vertically integrated expansion.
Commenting of these acquisitions, Liam O'Mahony, Chief Executive of CRH said: "The recent acquisition of CYDI represents a major expansion of our materials business in Florida, adding a highly respected key player in the materials supply chain with an extensive and efficient rail distribution network in this large and long-term growth market. CYDI is a superb fit with CRH's existing operations in Florida, and should be an excellent development platform for future growth. The other three transactions are in keeping with our ongoing strategy of adding strong, well-managed businesses with good market and reserve positions to our existing Materials operations across the United States."
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 |