CRH acquires major concrete paving and landscape walling manufacturer in Germany
02 May 2002
CRH plc, the international building materials group, announces the purchase by its Europe Products & Distribution Division of the EHL Group for a cash consideration, including assumed debt, of euro 155.4 million. Goodwill arising on the transaction is estimated at euro 8.3 million.
The EHL Group is the market leader in concrete paving and landscape walling products operating a comprehensive network of 32 modern production facilities in Germany and one in Poland.
Despite difficult economic circumstances in Germany in recent years and the prolonged severe downturn in the construction sector following the post-unification boom, EHL has achieved consistent profitability largely due to the fact that 65% of turnover is derived from the repair, maintenance and improvement (RMI) sector. In the year ended December 31, 2001, the company attained sales of euro 235.4 million on which adjusted EBITDA of euro 26.4 million was reported. Adjusted trading profit (EBIT) amounted to euro 14.6 million.
EHL employs 1,350 people. The senior management team led by Chief Executive Mr. Bernhard Ehl will continue to operate the business as part of CRH’s Europe Products & Distribution Division’s concrete products group headed by Mr. Máirtín Clarke.
EHL’s activities mirror the fast-growing and very successful concrete paving and landscape walling operations in our US Architectural Products Group. It represents a significant addition to the concrete products group in Europe which currently has operations in the Netherlands, Belgium, France and the United Kingdom. The acquisition brings total annualised sales for that group to circa euro 700 million.
Commenting on the acquisition, Brian Hill, Group Managing Director – CRH Europe Products & Distribution, said:
"With its strong focus on the RMI sector, EHL complements CRH’s existing operations in the Benelux and should serve as a platform for further growth in Germany and in the surrounding countries. We expect that EHL’s broad product range and strong marketing, logistics and product development will allow us to generate substantial efficiencies and synergies."
Contact CRH at Dublin : +353 (0) 1 404 1000
|Liam O’Mahony ||Chief Executive |
|Harry Sheridan ||Finance Director |
|Myles Lee ||General Manager - Finance |