CRH reaches agreement to acquire major US concrete products business
13 March 2008
CRH plc, the international building materials group, announced today that it has reached agreement to acquire the Pavestone Group LP for an upfront cash consideration, 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 required regulatory approvals.
Pavestone is headquartered in Dallas, Texas and operates a national network of 18 concrete paver plants at 16 locations across the United States. In addition it has decorative stone bagging plants at 14 of these locations. The group currently employs 1,300 people across its operations. Approximately 70% of Pavestone's sales are in the retail homecenter channel, with the remaining sales split evenly between the commercial and distributor channels. Adjusted EBITDA for 2007 amounted to approximately US$65 million on sales of US$368 million.
Pavestone's operations complement the existing retail business of CRH's Architectural Products Group (APG), which operates from 30 paver plants and 11 bagging plants in 37 states, with good opportunities for synergies. Acquisition of Pavestone offers APG a broader national footprint in concrete landscaping products (pavers, retaining wall products and patio products, collectively described as hardscapes) and bagged stone with excellent modern production facilities and an experienced workforce.
In a comment, CRH Chief Executive Liam O'Mahony said "The proposed acquisition of Pavestone represents an opportunity to build on our success in developing APG into the leading North American supplier of multiple landscaping products, enabling profitable growth and an improved ability to service our core professional and DIY hardscape markets."
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 |