CRH spends €540m on 48 acquisitions

BUILDING MATERIALS giant, CRH, spent close to €540 million on buying up smaller rivals last year, with the bulk of the activity in the second half, according to a statement issued by the group yesterday.

The company made 17 acquisitions worth a total of €376 million during the second half of 2010. This brought its overall spend for the year to €536 million.

The final number of deals it did came to 28.

Chief executive Myles Lee said the acquisitions will add €800 million to its sales in a full year and added that they will contribute about €200 million to 2010 revenues.

“With acquisition and investment expenditure of €370 million, the second half of 2010 has seen a step up in the pace of development activity for the group,” he said.

“The full-year spend of €540 million includes a total of 28 bolt-on acquisitions which offer good value and returns, expanding in particular our materials footprints in Switzerland and the US, and substantially enhancing our presence in the attractive German distribution market.”

Its Europe products and distribution division spent €151 million, which included the €126 million buyout of the 50 per cent share of German distribution business, Bauking, that it announced in September.

The purchases made by the division during the year are expected to add €450 million a year to CRH’s sales.

The Americas materials divisions spent €235 million on nine purchases, some of which increased the Irish group’s position in the western and southwestern US during the year.

Its Europe materials division spent €84 million on the acquisition of Risi, a stone and ready-mixed concrete supplier in Switzerland.