The transactions completed since the end of June bring full- year 2012 development activity for the group to almost €630 million: with net deferred consideration of approximately €130 million, cash spend for the year amounted to approximately €500 million.
The development initiatives included in the group update comprise 12 acquisitions totalling €256 million in the Americas and six transactions totalling €119 million in Europe.
The Americas Materials Division acquired a majority stake in Trap Rock Industries, an integrated aggregates and asphalt business in New Jersey, and also completed five other bolt-on transactions during the period, adding a total of approximately 515 million tonnes of strategically located aggregates reserves and strengthening positions in a number of key states.
CRH’s Architectural Products Group (APG) added seven concrete paving facilities in Canada and Florida in one transaction while two other acquisitions during the period strengthened APG’s existing businesses in Washington DC and Detroit.
The precast business completed transactions in California and Oregon broadening its product portfolio, strengthening local market positions and generating production synergies.
Meanwhile, the Europe Materials Division acquired a concrete products manufacturer in Finland and an aggregates, ready-mixed concrete and cement importation business in the Isle of Man, UK. In addition, an investment in a precast concrete plant was made in China. The Engineered Accessories business within Europe Products broadened its product range with a UK acquisition, while the Europe distribution network in the Benelux was expanded by the acquisition of two sanitary, heating and plumbing businesses with a total of 14 branches in Belgium.
Myles Lee, CRH chief executive, said: “The €0.6 billion of development activity during 2012 reflects CRH’s long-term, value-based approach to developing our balanced portfolio. The materials transactions bring strong asset-backed resource positions and, when combined with existing operations, provide significant opportunities for vertical integration. In the Products segment, the 2012 acquisitions reflect our focus on repair, maintenance and improvement (RMI) and sustainability segments and on the optimisation of production networks in core regions, while our 2012 Distribution additions also reflect an RMI emphasis as well as the ongoing development of new channel opportunities in European distribution markets.”
