Development Initiatives to Eur114.5m - Highlights
CRH PLC
12 January 2000
CRH ANNOUNCES EURO 114.5 MILLION DEVELOPMENT INITIATIVES
HIGHLIGHTS
CRH plc, the international building materials group, today announced a range
of development initiatives totalling Euro 114.5 million undertaken during the
second half of 1999. These initiatives are in addition to the acquisitions of
Dell Contractors/Millington Quarry, Thompson-McCully and Finnsementti/Rudus,
all of which were completed in July at a total cost of approximately Euro 970
million.
Europe - Materials : Euro 11.1 million
Acquisition of a concrete rooftile and pipe producer in Northern Ireland.
Acquisition of a precast concrete products and readymixed concrete
manufacturer in Poland.
Construction of a new pipe production facility in County Cork in the Republic
of Ireland.
Europe - Products & Distribution : Euro 5.7 million
Buyout of a clay brick manufacturer in Poland.
Acquisition of a DIY store and a roofing materials distributor in the
Netherlands.
North America - Materials : Euro 52.8 million
Acquisition of an integrated asphalt, aggregates and readymixed concrete
business in northeastern Pennsylvania, and of businesses in Michigan and Utah.
North America - Products & Distribution : Euro 44.9 million
Acquisition of a bagged cement and concrete mixes producer in Oregon by the
Architectural Products Group together with the installation of new paver
capacity to serve the Tennessee and southern California markets and the
construction of two production facilities in Arizona.
Acquisition by the Precast Group of a leading manufacturer of prestressed
concrete pile in southern California.
Acquisition by the Glass Group of a glass fabrication business in Washington
D.C. and two specialty glass production facilities in South Carolina and
California.
Liam O'Mahony, CRH Chief Executive, commented:
'These initiatives are very much in keeping with the Group's well-established
strategy of combining capital expenditure for organic expansion with strategic
mid-sized value-enhancing acquisitions to enable CRH to maintain its
leadership positions and to meet the growing demands in its markets.'
Contact at Dublin 404 1000 (+353 1 404 1000)
Liam O'Mahony Chief Executive
Harry Sheridan Finance Director
Myles Lee General Manager - Finance
CRH ANNOUNCES EURO 114.5 MILLION DEVELOPMENT INITIATIVES
CRH plc, the international building materials group, today announced a range
of development initiatives totalling Euro 114.5 million undertaken during the
second half of 1999. These initiatives are in addition to the acquisitions of
Dell Contractors/Millington Quarry, Thompson-McCully and Finnsementti/Rudus,
all of which were completed in July at a total cost of approximately Euro 970
million.
Europe - Materials : Euro 11.1 million
In July 1999, CRH acquired Ballymena Construction, a manufacturer of concrete
rooftiles and pipes in Northern Ireland. With annual sales of approximately
Euro 4 million, this acquisition consolidates CRH's presence in the concrete
rooftile and pipe markets in Northern Ireland and provides a basis for
expansion of concrete pipe sales in the Republic of Ireland.
In August 1999, Cementownia Ozarow ('CO') acquired a 72.5% shareholding in
Mirbud, a manufacturer of precast concrete products and readymixed concrete,
based in Skierniewice southwest of Warsaw. With annual sales of circa Euro 4
million, Mirbud increases CO's vertical integration and establishes a platform
for growth in a rapidly expanding market area.
John A. Wood has commenced a project to consolidate three concrete pipe
production facilities at a new location in Carrigtwohill, County Cork.
Construction of the new plant, which will have a capacity of 50,000 tonnes per
annum when fully commissioned, will lead to substantial cost savings.
The total cost of the development initiatives undertaken in Europe - Materials
is Euro 11.1 million inclusive of goodwill amounting to Euro 0.2 million.
Europe - Products & Distribution : Euro 5.7 million
In July 1999, the Clay Products Group acquired the minority shareholding of
35% in Patoka Industries in accordance with the terms of a buyout option
negotiated at the time of CRH's initial investment in 1998. Patoka is a
producer of clay facing bricks based in Upper Silesia in southwestern Poland.
In the Netherlands, the Distribution Group acquired a DIY store in Waalwijk in
July 1999 and Fielmich Dakmaterialen, a specialist roofing materials
distributor located in Utrecht, in September 1999. The Distribution Group's
DIY division now comprises 44 stores under the Gamma/Karwei franchise and its
roofing materials merchanting division operates a total of 10 branches. The
acquisitions have combined sales of Euro 7 million.
The total cost of the buyout and acquisitions by Europe - Products &
Distribution is Euro 5.7 million inclusive of goodwill of Euro 1.4 million.
North America - Materials : Euro 52.8 million
Northeast: In July 1999, Oldcastle Materials Group acquired Slusser Brothers
Construction Group, an integrated asphalt, aggregates and readymixed concrete
producer based in Hazelton, northeastern Pennsylvania. The company, with
annual sales of Euro 33 million, is the market leader in the Hazelton area and
has good aggregate reserves. In combination with the Group's existing
operations in the region, the acquisition of Slusser will enable the Materials
Group to derive greater benefit from the substantial upswing in highway
construction activity in Pennsylvania anticipated over the next three years.
Mid-West: In August 1999, the Materials Group purchased South Kent Gravel, an
add-on for the Thompson-McCully operations which were acquired in July. South
Kent, an aggregates producer with annual sales of circa Euro 5 million, is
located near Grand Rapids in southwestern Michigan and has total permitted
reserves of 30 million tons.
Mountain: In October 1999, the Materials Group acquired Keigley Quarry, a
large dolomite and limestone reserve totalling approximately 90 million tons
located 40 miles south of Lehi in Utah. The acquisition of Keigley, with
annual sales of Euro 11 million, is an excellent fit with the Group's existing
operations in Salt Lake Valley and provides the Materials Group with a long-
term aggregate source for its asphalt and readymixed concrete activities in
southern Utah.
The total cost of these three acquisitions by North America - Materials
amounts to Euro 52.8 million; there is no goodwill arising on acquisition.
North America - Products & Distribution : Euro 44.9 million
Architectural Products Group
In December 1999, Oldcastle Architectural Products Group ('APG') acquired
Sakrete PNW, a producer of bagged cement and concrete mixes based in Portland,
Oregon with annual sales approximating Euro 6 million. The acquisition
complements APG's existing bagging operations in the Northwest.
APG has commenced construction of a large pallet paver plant in Knoxville,
Tennessee and a large pallet paver and masonry manufacturing complex in
southern California. The Tennessee facility will be commissioned in the second
half of 2000 whilst the California plant is expected to be on-line in late
2000. These investments will support APG's continued growth in the
homecenter and hardscape sectors in these two regions. The plants represent
another step in an ongoing national strategic development programme and will
follow the commissioning of the large pallet paver plants in Waco, Texas and
Easton, Pennsylvania announced in January and July 1999 respectively.
APG has also undertaken a project to build a new block plant in Phoenix,
Arizona. Through addressing long-term capacity requirements, this expenditure
enables APG to pursue expansion of its homecenter and hardscape initiatives in
Arizona and further afield. Commissioning is expected to take place in the
second half of 2000. A new bulk and dry-mix packaging plant is also under
construction in Phoenix.
Precast Group
In July 1999, Oldcastle Precast Group acquired the pile manufacturing division
of ARB in southern California which has annual sales of circa Euro 5 million.
The combination of ARB's production capacity with that of Utility Vault
strengthens the Precast Group's position in the expanding southern California
pile market and gives the Group the ability to service several large jobs
contemporaneously.
Glass Group
In November 1999, Oldcastle Glass Group acquired Free State Glass Industries,
an architectural glass fabricator with a single strategically located plant in
Washington, D.C. With annual sales approximating Euro 6 million, Free State
complements the Group's existing facilities in Moorestown, New Jersey and Rock
Hill, South Carolina and presents an opportunity to expand sales penetration
in the Washington/Baltimore area, the fourth largest Metroplex in the United
States.
In December 1999, the Glass Group acquired two specialty glass production
facilities in South Carolina and California with combined annual sales of
circa Euro 16 million. The investment constitutes the Glass Group's first
venture into the specialty glass segment. This segment, which is quite
fragmented when compared with the Group's existing markets, offers promising
future growth prospects.
The above development initiatives in North America - Products & Distribution
amount to Euro 44.9 million inclusive of goodwill of Euro 1.8 million. The
four capital projects total Euro 28.4 million.
CRH plc, Belgard Castle, Clondalkin, Dublin 22, Ireland
TELEPHONE +353.1.404 1000 FAX +353.1.404 1007
E-MAIL mail@crh.ie WEBSITE www.crh.ie
Registered Office, 42 Fitzwilliam Square, Dublin 2, Ireland
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