Acquisition
CRH PLC
26 April 2006
26 April 2006
CRH ACQUIRES MAJOR NEW PLATFORM IN THE UNITED STATES
CRH plc, the international building materials group, announces that it has
reached agreement to acquire MMI Products, Inc. (MMI), a leading US
manufacturer and distributor of building products used in the non-residential,
residential and infrastructure construction sectors, for a cash consideration,
including debt acquired, of approximately US$350 million. Completion of this
transaction is expected by the end of this week. Intangible assets, primarily
goodwill, arising on this deal amount to approximately US$115 million.
Headquartered in Houston, Texas, MMI's operations fall into three distinct
product segments, encompassing fencing products, welded wire reinforcement and
construction accessories, in each of which MMI is a leader in its industry
sector. Merchants Metals manufactures and distributes a variety of fencing and
security products. Ivy Steel and Wire produces welded wire reinforcement used
primarily in non-residential and infrastructure applications. The third
business, Meadow-Burke, is a major manufacturer of construction accessories,
offering over 2,000 specialised products also used primarily in non-residential
and non-building concrete construction. Approximately 70% of total MMI sales are
for non-residential applications.
In 2005, profit before interest, tax, depreciation, amortisation and goodwill
impairment (EBITDA) for the combined MMI businesses acquired amounted to US$50
million on sales of US$721 million.
MMI employs approximately 2,500 people and operates an extensive and
well-positioned network of 19 principal manufacturing facilities strategically
located throughout the US and Mexico together with 62 distribution centres in 30
US states.
The acquisition of MMI represents a major new development for CRH. MMI will be
the foundation of a fifth product group for CRH's Americas Products &
Distribution Division, and represents a new platform for expansion in product
segments which offer significant organic and development growth opportunities.
MMI also provides CRH with US exposure to construction accessories and fencing,
businesses in which CRH's Europe Products & Distribution Division already has
well-established and expanding positions and which offer the potential for
significant joint initiatives and co-operation.
Commenting on the transaction, Liam O'Mahony, Chief Executive of CRH said:
'This is a very exciting development for CRH. We are delighted to have the
opportunity to acquire MMI, a business with a reputation for excellence in
product quality and customer service. MMI will be a valuable addition to our
businesses in North America. The transaction represents a unique opportunity for
future development of CRH's operations within the US, in sectors which have
already proved successful for the Group in Europe.'
Contact CRH at Dublin 404 1000 (+353 1 404 1000)
Liam O'Mahony, Chief Executive
Myles Lee, Finance Director
Eimear O'Flynn, Head of Investor Relations
Maeve Carton, Group Controller
CRH plc, Belgard Castle, Clondalkin, Dublin 22, Ireland
TELEPHONE +353.1.4041000 FAX +353.1.4041007
E-MAIL mail@crh.com WEBSITE www.crh.com
Registered Office, 42 Fitzwilliam Square, Dublin 2, Ireland
This information is provided by RNS
The company news service from the London Stock Exchange
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