CRH plc has announced that €0.19 billion was spent on acquisitions and investments in 2014, while divestments led to proceeds of €0.35 billion.
The construction materials group completed a total of 21 acquisition transactions last year, eight in Europe and 13 in the Americas. The European transactions amounted to approximately €40 million and included the purchase of certain ready-mix concrete and aggregates assets from Cemex Ireland and a precast concrete business in Denmark. CRH’s distribution business completed six acquisitions in France, Germany and Benelux, leading to an additional nine branches in Europe.
The group’s Americas Materials Division completed eight bolt-on acquisitions in 2014, adding more than 230 million t to the company’s aggregate reserves. The Americas Products Division oversaw the completion of five transactions across the Precast, Architectural Products and Construction Accessories business divisions. In total, some €150 million was spent on acquisitions in this region.
Of the €0.35 billion disposal proceeds gained by the group in 2014, divestments in Europe accounted for around €240 million, with the remaining €110 million stemming from those in the Americas. In the US, CRH’s Materials Division disposed of a number of non-core operations and completed an asset exchange in Washington state. The Products Division divested a further five operations in the Precast, Architectural Products and Building Envelope Business.
Over in Europe, CRH disposed of its 50% equity stake in Turkey’s Denizli Çimento and the group’s Heavyside Division divested several ready-mix concrete and concrete products businesses. Furthermore, all three of CRH’s Europe Divisions realised proceeds from the sale of surplus assets.
“In August 2014 we announced a multi-year €1.5 billion to €2 billion divestment programme; the proceeds of €0.35 billion generated in 2014 demonstrate that this programme is well underway. With a refined portfolio focus, the Group is now well positioned to pursue acquisitions which are in line with our long-term growth strategy. The 21 transactions completed during 2014 comprise primarily bolt-on acquisitions for our existing operations in the Americas, together with the expansion of our builders merchanting network in Europe,” said Albert Manifold, CRH Chief Executive.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/08012015/crh-reports-completion-of-16-divestment-transactions-in-2014-99/