CRH invested €536m last year

CRH spent €536 million on acquisitions and developmental initiatives last year — which, while down on the multi-billion euro levels seen in previous years — was comfortably ahead of 2009’s €450m outlay.

Last year’s spend covered 14 transactions made during the first half of the year and was boosted by 17 development initiatives — totalling €367m — undertaken during the second half.

In all, the full-year spend covered 28 bolt-on acquisitions and saw the Dublin-headquartered building materials giant increasing its presence in the US and central Europe (Germany and Switzerland, in particular).

The group also continued to invest in its China-based associate, Yatai Cement — which has grown market share in the north-east of that country.

“With acquisition and investment expenditure of €0.37 billion, the second half of 2010 has seen a step-up in the pace of development activity for the group,” commented CRH chief executive, Myles Lee.

Mr Lee added that the annual spend (which also takes into account some deferred acquisition payments relating to prior year deals) expands CRH’s materials footprint in Switzerland and the US, “subsequently enhancing our presence in the attractive German distribution market”.

He went on to point out that the acquisitions made last year will contribute incremental annualised sales of €800m, “of which approximately €200m will be reflected in our 2010 results”.

While CRH’s total investment spend for 2009 covered 16 acquisitions in total (most in its US operations) and a second half outlay of €168m; the 2010 spend was more balanced across its entire global business.

In terms of highlights, one acquisition and two investments in associate companies (totalling a combined €84m) were made in the group’s Europe Materials division; two acquisitions — valued at a combined €151m — were made in the Europe Products and Distribution division; three bolt-on buys (to the tune of €24m) were made in the corresponding division in the US, while €108m was spent on nine acquisitions in CRH’s leading Americas Materials division.

While the bulk of investment is understandably still centred on the group’s main divisions in Europe and North America, management said earlier this year that it will not be geographically blind regarding future investment and acquisitions — adding that it had a continuing interest in increasing its presence in Asia and other emerging markets.