CRH, the international building materials group, has revealed a 2014 acquisition and investment spend of €190 million, reflecting completion of 21 transactions. On the divestment front, the Group completed 16 transactions and realised total disposal proceeds of €350 million. “In August 2014 we announced a multi-year €1.5 billion to €2 billion divestment programme; the proceeds of €0.35 billion generated in 2014 demonstrate that this programme is well underway,” said Albert Manifold, CRH Chief Executive.
CRH, the international building materials group, has revealed a 2014 acquisition and investment spend of €190 million, reflecting completion of 21 transactions. On the divestment front, the Group completed 16 transactions and realised total disposal proceeds of €350 million.
“In August 2014 we announced a multi-year €1.5 billion to €2 billion divestment programme; the proceeds of €0.35 billion generated in 2014 demonstrate that this programme is well underway,” said Albert Manifold, CRH Chief Executive. “With a refined portfolio focus, the Group is now well-positioned to pursue acquisitions which are in line with our long-term growth strategy. The 21 transactions completed during 2014 comprise primarily bolt-on acquisitions for our existing operations in the Americas, together with the expansion of our builders merchanting network in Europe.”
In Europe during 2014, CRH made eight acquisitions for €40 million and seven divestments for €240 million. The Group’s Heavyside operations in Europe acquired selected ready mixed concrete and aggregates assets of Cemex Ireland (including 12 million tonnes of high quality reserves) and a precast concrete business in Denmark, adding total annualised sales of c.€10 million. CRH’s Distribution business completed six acquisitions in the Benelux, France and Germany, adding a total of nine branches with annualised sales of around €70 million.
The disposal of CRH’s 50% equity stake in Denizli Çimento, the Group’s only involvement in the Turkish construction market, was the largest single divestment in 2014, realising proceeds of €170 million. The Heavyside Division also disposed of a number of ready mixed concrete and concrete products businesses, while all three Europe Divisions realised proceeds from disposal of surplus assets. As most of the divested entities had been equity-accounted by CRH the impact of these divestments on Group sales is not material.
In the Americas during 2014, CRH made 13 acquisitions for €150 million and nine divestments for €110 million. Eight bolt-on acquisitions were completed by the Group’s Americas Materials Division in 2014 throughout the US adding annualised incremental sales of around €42.7 million and over 230 million tonnes of aggregate reserves. CRH’s Americas Products Division completed five transactions with €75.9 million of incremental sales in the Precast, Architectural Products and Construction Accessories businesses.
CRH’s Materials Division disposed of several non-core operations across the United States and completed an asset exchange in the state of Washington. The Products Division sold five operations in the Precast, Architectural Products and Building Envelope businesses.
