BUILDINGS materials group CRH has spent Pounds 18.6 million on a number of acquisitions to add to its existing US operations. The latest move has brought group spending on acquisitions so far this year to Pounds 93 million.
CRH has acquired Ritangela Construction, an asphalt and paving construction business in Orange County, New York. This business is an "excellent strategic fit" with the CRH Callanan quarry at Kingston, New York, and with the quarry and asphalt business the group acquired in Sullivan County in the same state in 1994 according to group chief executive, Mr Don Godson.
The group has also acquired certain assets of Brooks Products, a producer of precast concrete vaults, meter boxes and related products for underground utility installations. This acquisition would give CRH's Pre cast Group a strong presence in Texas and would complement its operations in the south eastern states, Mr Godson said. Brooks has eight plants three in Texas, three in Florida and one each in Charlotte, North Carolina, and Portland, Oreon.
The acquisition of both Foster Masonry and Southeastern Manufacturing will expand CRH's architectural products divisions into New England. Based about 20 miles south of Boston, the companies have been combined to form Foster Southeastern. The operation produces concrete masonry, block and pre cast concrete products.
The total acquisition price of Pounds 18.6 million (will be goodwill of Pounds 3 million on the deal. The three companies recorded trading profits of Pounds 2.8 million in 1995 of total sales of Pounds 32.7 million.
Costing 61/2 times historic trading profits, the deals will be funded out of existing cash resources and bank facilities. The latest acquisitions will bring CRH's annual sales in the US to more than
Group operations in the US are divided into four core product based businesses under the holding company, Oldcastle. The business divisions are materials precast architectural products and glass.
Oldcastle chief executive Mr Liam O'Mahony said that, while each of the acquisitions was small, the move "is part of our continuing strategy of bolt on additions to our existing operations".
Since the beginning of the year, CRH has announced a number of acquisitions in the US and Europe. In March, the group announced the Pounds 55 million acquisition of US aggregates company Jack B. Parson of Utah last month, the group bid Pounds 7 million for a 50 per cent stake in the French builders' merchant business Matenaux Service. Earlier this month, the group paid Pounds 12 million for two Dutch builders' merchants.
