Oldcastle acquire Ashland Paving and Construction

OLDCASTLE Materials Inc, the US subsidiary of Dublin-based CRH plc, have completed the acquisition of Atlanta-based Ashland Paving and Construction Inc. (APAC) for a total consideration of around US$ 1.3 billion (£688 million). The purchase is CRH’s largest ever transaction and will be financed using debt.

APAC are a leading US aggregates, asphalt and heavy highway construction company with approximately 9,700 employees and extensive operations in 14 mid-western and southern states. In the 12 months ending June 2006 APAC’s sales amounted to US$2.9 billion (£1.5 billion) with EBITDA of approximately US$220 million (£116 million).

In the year ended June 2006 APAC produced 32.5 million tons of aggregates, 31 million tons of asphalt, and one million cubic yards of ready-mixed concrete. Approximately one third of APAC’s aggregates production and two thirds of asphalt production are consumed internally.

The company’s total permitted reserves amount to over 2 billion tons.

APAC’s president, Kirk Randolph, will continue to have responsibility for the company as part of CRH’s Americas Materials division, which prior to the acquisition was the largest US asphalt producer with 2005 volumes of 41 million tons; the fourth largest US aggregates company with 2005 volumes of 162 million tons and a top-ten ready-mixed concrete player with volumes of 8.5 million cubic yards.

Commenting on the purchase, CRH chief executive Liam O’Mahoney said the acquisition of APAC represented a major expansion for CRH into new materials markets in mid-western and southern US states and significantly increased CRH’s position as a top-tier aggregates and leading asphalt producer in the US. ‘We aim to build on this significant new platform through enhancing the materials focus of APAC’s business and through the application of Americas Materials division’s vertically integrated approach to aggregates, asphalt and highway construction.’