CRH spends €225m on foreign acquisitions

Building materials giant CRH is spending €225 million on acquisitions in Turkey and the US.

The Republic's biggest listed company announced yesterday that it had bought 50 per cent of Turkish operator Denzili Cement, which is based in the city of the same name in the southwest of the country, close to the Aegean coast.

The deal will be the Irish group's first venture into Turkey, although it has other interests in the eastern Mediterranean region.

At the same time, it has exercised its option to buy out the 50 per cent of Florida-based Paver Systems that it does not own. CRH purchased half of the company three years ago.

A statement yesterday said that the total cost of both purchases would be €225 million, which includes debt assumed with both businesses. Combined 2006 results for both businesses came to €165 million in sales and €58 million in profits before interest, tax and write-offs.

Under the agreement with Denzili's owner, Turkish industrial group Eren Holdings, CRH will have joint management control of the company.

Denzili has the capacity to produce 1.8 million tonnes of cement and has limestone reserves of 100 million tonnes.

It also has a network of 13 concrete plants, which produced 1.3 million cubic metres in 2006.

Paver Systems makes interlocking concrete paving and has facilities in West Palm Beach, Tampa and Orlando. There is continued strong demand for its products in Florida, which has one of the better performing economies in the US.

Commenting on the deals yesterday, CRH chief executive Liam O'Mahony said the group had leadership positions in building materials, products and distribution in both Europe and the US.

"The two transactions announced today are important steps in the further development of our Europe materials and Americas products activities," he said.

Mr O'Mahony said Denzili had a strong management team and excellent reserves.

Paver Systems's returns have been fully consolidated into the group's accounts. Mr O'Mahony described it as an "excellent performer".

CRH is a consistently acquisitive company, and last year spent more than €2 billion on buying up businesses.