CRH expands US operation with roofing firm acquisition

CRH has reportedly expanded its North American operations by acquiring a private roofing specialist based in Minnesota.

According to the online M&A (mergers and acquisitions) news service, Mergermarket, the Dublin-headquartered cement and building materials provider has acquired the St Paul-headquartered United Products Corporation — a privately-owned roofing and sliding distributor, with 15 branches across five states, for an undisclosed sum.

Seen as being a relatively minor bolt-on buy for CRH, it nonetheless could add more than €77 million in annual sales to the company.

“By the time of its last IMS [interim management statement], at the start of November, CRH had spent approximately €450m on 36 transactions. This latest announcement demonstrates that CRH continues to execute on its tried and tested bolt-on acquisition strategy,” Goodbody Stockbrokers’ Robert Eason said.

The company, itself, did not comment on any deal action yesterday.

CRH — which has just switched its primary share listing from Dublin to London — is due to formally announce the details of its investments and acquisitions made during the second half of 2011, in early January.

In its last trading update, covering the third quarter of the year and published last month, CRH said that group sales were up by 4% year-on-year; with North American revenues rising by 3% on an annualised basis.

Back in August, the group stated that it could “very comfortably” spend between €1.5bn and €2bn — over the next year — without stretching its balance sheet or putting pressure on its credit rating.

While that figure wasn’t offered as a specific spending target, the company did say — at the time — that it had “an active pipeline of opportunities”.