Commenting on these developments, Myles Lee, CRH Chief Executive, said:
"The bolt-on transactions announced today are very much in keeping with the Group's strategy to acquire businesses which add value to our existing operations or which expand our footprint in developed markets where we see opportunities for further growth. Meanwhile we continued to grow our activities in developing economies by investing through our 26% associate in northeastern China and through a strategic bolt-on acquisition in Ukraine."
CRH ANNOUNCES SECOND-HALF 2011 DEVELOPMENT SPEND OF €0.4 BILLION BRINGING TOTAL 2011 DEVELOPMENT SPEND TO €0.6 BILLION
CRH plc, the international building materials group, today announces 23 acquisition and investment initiatives totalling approximately €0.4 billion undertaken during the second-half of 2011 as part of its continuing programme of development activity.
The development initiatives in this Update include:
· Europe Materials: 3 acquisitions, 1 investment - €195 million A significant investment in cement grinding capacity in Belgium complementing existing activities in the Benelux; strategic add-on in Ukraine for recently commissioned state-of-the-art cement plant; readymixed concrete bolt-on acquisitions in Finland and continued development by associate Yatai Building Materials in northeastern China.
· Europe Products & Distribution: 4 acquisitions - €28 million Further build-out of Sanitary, Heating and Plumbing distribution activities expanding to 20 the total number of branches in this segment in Belgium.
· Americas Materials: 9 acquisitions - €112 million (US$157 million) Active second-half bolt-on programme, adding approximately 0.25 billion tonnes of aggregates reserves, improving existing market positions and bringing total 2011 investment by this Division to approximately US$0.3 billion.
· Americas Products & Distribution: 6 acquisitions - €72 million (US$101 million) Addition of 24 Distribution branches in four transactions in the second half of 2011; in particular the acquisition in December of United Products expanded our existing positions in the Northern Plains states of Minnesota, Wisconsin, North Dakota, South Dakota and Nebraska.
Charles Stanley has initiated its coverage on newly-listed building materials group CRH with a hold recommendation after it joined the FTSE 100 earlier this month.
“On valuation the shares are probably cheap on a long term view and should have yield support but, given the economic outlook and the cyclicality of the industry there seems no urgency to buy the shares,” said analyst Tome Gidley-Kitchin.
CRH is moving its main listing to the LSE from the ISEQ. 1098 = £10.98, so don't get too excited! The previous figures here are in pounds too not pence (or maybe Euro? as I haven't been following this board).
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