Building materials group CRH has continued its acquisition spree with the €154 million (£121 million) purchase of the US group Mount Hope Rock Products.

The acquisition will increase CRH's presence in the New York-New Jersey area and is aimed at capitalising on the big increase in federal spending on US highways.

"This is a very good business because of a substantial increase in US federal spending on highways and we are always looking to expand in regions with good highway programmes," CRH's general manager (finance), Mr Myles Lee said.

Mount Hope is an aggregates, asphalt and paving company and in the year to the end of March produced 4.1 million tons of aggregates and 1.4 million tons of asphalt. Its main location is the Mount Hope granite quarry 25 miles west of New York which has reserves of 300 million tons, sufficient for 70 years.

In the year to March, Mount Hope had sales of $105 million (€118 million) and earnings before interest, tax, depreciation and amortisation (EBITDA) of $19 million. Trading profits after depreciation were $13 million.

Davy analyst Mr Joe Burnell said the acquisition price was relatively high by CRH standards at 7.6 times EBITDA and 11.1 times operating profits.

He added that there was significant scope for efficiencies when Mount Hope was integrated into CRH's other operations in the region, the Dell and Millington operations in northern New Jersey. Mr Burnell estimated total synergies of $5 million within the next year or two, which would reduce the EBITDA and operating profits multiples to six and eight respectively.

With the synergies, the deal will add a little over one cent to CRH's earnings per share, he added.

This is the first big acquisition that CRH has completed this year although it is expected to be the first of a series of big moves, given the financial firepower that CRH enjoys after its €1 billion rights issue.

CRH's plan to buy the Finnish building products group Addtek for around €350 million is the subject of a detailed competition investigation by the European Commission after an initial investigation said the deal could result in reduced commission in Finland and the Netherlands.

CRH is also involved in discussions which could lead to the purchase of an initial 25 per cent stake in the Israeli cement producer Nesher for €225 million. If this deal is concluded, it is expected to include an option for CRH to take its stake to 50 per cent.