CRH complete four US acquisitions
CRH plc, the Dublin-based international building materials group, have announced the completion of four separate acquisitions by their Americas Materials Division for a total combined cash consideration, including debt, of US$350 million (€258 million). The combined businesses reported EBITDA of US$53 million in 2006 on sales of US$360 million.
In early September, the Americas Materials Division acquired Conrad Yelvington Distributors Inc. (CYDI), the largest rail distributors of aggregates in the south-eastern US. Based in Daytona Beach, Florida, CYDI handle approximately 10 million tons of materials annually through their network of 27 rail-served distribution terminals located throughout Florida and in Alabama, Mississippi and Michigan. CYDI lease over 1,800 railcars and own 35 locomotives for railcar movements, and most of their yards are strategically located close to large aggregates consumers.
CRH say CYDI will be a key step in furthering the integration of the company’s Materials and Products operations in the important Florida market.
During August, the Materials Division’s West region acquired two integrated aggregates, asphalt, ready-mixed concrete and paving/construction businesses: Eugene Sand & Gravel, based in Eugene, Oregon; and Cessford Construction, who operate in central and eastern Iowa and in west-central Illinois. The two businesses have combined aggregates reserves of approximately 160 million tons and in 2006 produced 2.3 million tons of aggregates, 0.4 million tons of asphalt and 0.3 million cubic yards of ready-mixed concrete.
CRH say Eugene Sand & Gravel is an excellent fit with their existing operations in Oregon, while Cessford represents a significant market expansion in Iowa.
At the end of August, the Materials Division’s Mid-Atlantic region acquired McMinn’s Asphalt and Prospect Aggregates, a vertically integrated materials business based near Lancaster, Pennsylvania. McMinn’s produce around 1.7 million tons of aggregates, 0.7 million tons of asphalt and 0.2 million cubic yards of concrete annually from their network of two quarries, five asphalt plants and four concrete plants.
CRH say the company will add approximately 170 million tons of well-located reserves and provide a good growth platform for further vertically integrated expansion.
Commenting on the four acquisitions, Liam O’Mahony, chief executive of CRH, said: ‘The recent acquisition of CYDI represents a major expansion of our Materials business in Florida, adding a highly respected key player in the materials supply chain with an extensive and efficient rail distribution network in this large and long-term growth market. CYDI is a superb fit with CRH’s existing operations in Florida and should be an excellent development platform for future growth. The other three transactions are in keeping with our ongoing strategy of adding strong, well-managed businesses with good market and reserve positions to our existing Materials operations across the US.’
