In CRH’s Development Strategy Update for 2H13, the international building materials company has announced seven new acquisitions for the company in 2H13. These new investment opportunities, combined with the previous acquisition of Mykolaiv Cement in Ukraine and the purchase of Indian cement manufacturer Sree Jayajothi Cements Limited by the company’s 50:50 Joint Venture, My Home Industries Limited, bring spending for 2H13 to €220 million and to €690 million for the whole year.
Albert Manifold, CRH Chief Executive, commented on the company’s new investments: “Development spend of almost €0.7 billion in 2013 reflected our strategic focus on establishing leading positions in attractive markets. During the second half of the year, we continued to strengthen our cement operations in high growth markets in Ukraine, India and China. The second half also saw several attractive bolt-on transactions, which expand our aggregates positions in a number of key markets in the US. In our Distribution segments, which benefit from resilient RMI spend in developed markets, we were pleased to add four branches to our existing network of builders merchanting outlets in northern France and a total of five branches in Texas, Florida and Georgia in the US.”
Investments for 2H13
Transactions in Asia
In September, Yatai Group Building Materials, CRH’s 26% associate in China, completed the purchase of Zhongbei Cement Company at a cost of €46 million. The company is located in the Liaoning Province, the largest cement market in northeast China, and the acquisition further consolidates Yatai’s position as market leader in the region. The company has a production capacity of 4.8 million tpa of cement, 3.6 million tpa of clinker and 1.5 million tpa of slag. The acquisition brings Yatai’s cement equivalent capacity to 32 million tpa.
Transactions in the US
CRH’s Americas Materials Division completed three bolt-on acquisitions in 2H13, adding sales of €21 million. The acquisitions totalled €33 million.
- Mountain West: in July 2013, the company purchased certain assets of Lafarge in the Western Slopes region of western Colorado. The acquisition comprised eight aggregates quarries, six ready-mixed concrete plants and 17 million t of replacement reserves.
- Central West: the company acquired assets of the Rogers Group in Mississippi in July 2013. This comprised three asphalt plants and two aggregates quarries.
- Northwest: CRH acquired selected assets of Turner Gravel in November 2013, complementing the purchase of quarry and related assets from Cemex in Salem, Oregon, in February 2013. Operations at the company’s nearby South Turner quarry will be consolidated into the Turner Gravel site in order to provide more efficient customer service.
- France: the company’s General Builders Merchants business acquired 4 Wolseley locations in Bayeaux, Fecamp, Pont & Marais and Abbeville. This increased CRH’s operations in Normandy to 19 locations and added incremental sales of €11 million.
- US: in September 2013, certain assets of JEH Company were acquired by CRH. This comprised a single-branch roofing distributor in Northwest Houston. In October 2013, a four-branch distributor of gypsum wallboard, metal studs and roofing products was purchased from Fogleman Builders Supply. These two transactions added incremental sales of €30 million.
Distribution transactions totalled €12 million.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.worldcement.com/europe-cis/07012014/investments_for_crh_totalled_%E2%82%AC690_million_in_2013_564/