Building group CRH generates €350m from disposals

Iseq heavyweight CRH said it generated €350 million from disposals last year.

Chief executive Albert Manifold said the disposals left it well positioned to pursue acquisitions that were in line with its long-term growth strategy.

During 2014, the building materials group spent €190 million on acquisitions and investments

“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,” said chief executive Albert Manifold in a statement.

In the Americas, a total of 13 acquisitions and 9 divestments were made by the group last year.Acquistions totalling €150 million were recorded. Eight bolt-on acquisitions were completed by the Americas materials division adding annualised incremental sales of $50 million and over 230 million tonnes of aggregate reserves.

The group’s Americas products division completed five transactions with $90 million of incremental sales in the precast, architectural products and construction accessories businesses.

CRH’s US materials division disposed of a number of non-core operations last year and completed an asset exchange in Washington. The products division sold five operations in the precast, architectural products and building envelope businesses, the group said.

A total of 8 acquisitions and 7 divestments were made in Europe last year by the group. Acquistions totalling €40 million were recorded. The group’s distribution business completed six acquisitions in the Benelux, France and Germany, adding a total of nine branches with annualised sales of €70 million.

CRH's heavyside operations in Europe acquired selected readymixed 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 €10 million.

The disposal of CRH's 50 per cent equity stake in Denizli Cimento, the group's only involvement in the Turkish construction market, was the largest single divestment in 2014, realising proceeds of €170 million. CRH's heavyside division also disposed of a number of readymixed 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, the company said.