Business

CRH completes $2.1bn acquisition of cement and concrete assets in Texas

CRH chief executive Albert Manifold says acquisition will strengthen the company’s ‘market-leading position’ in Texas and increase its exposure to attractive high-growth markets

CRH chief executive Albert Manifold: he says the acquisition will strengthen the company’s 'market-leading position' in Texas. Photograph: NYSE

Ellen O’Regan
Mon Feb 12 2024 - 12:54

Irish building materials giant CRH has officially completed the acquisition of cement and concrete assets in Texas for $2.1 billion (€1.95bn).

In November the Dublin-headquartered group announced that it had reached an agreement with US firm Martin Marietta Materials on the multibillion dollar acquisition. The assets now acquired by CRH comprise of a 2.1 metric tonne capacity cement plant located between San Antonio and Austin, a network of terminals along the eastern gulf coast of Texas, and a portfolio of 20 ready-mixed concrete plants with annual shipments of around 1.6 million cubic yards serving the Austin and San Antonio markets.

The combined portfolio of assets is expected to generate pro forma 2023 earnings before interest, taxes, depreciation, and amortisation (Ebidta) of around $170 million (€158m).

Announcing the deal last year, CRH chief executive Albert Manifold said the acquisition would strengthen the company’s “market-leading position” in Texas and increase its exposure to attractive high-growth markets.

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“Our ability to leverage our cement expertise and technical capabilities will enable us to enhance and optimise our existing footprint in Texas, resulting in significant synergies and self-supply opportunities,” he said.

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“This transaction reflects our disciplined approach to capital allocation as well as our commitment to deliver further growth and value creation for our shareholders. We also believe there is significant potential to unlock additional growth opportunities across an expanded footprint in this attractive growth market,” he added.

Formed in 1970 through a merger of leading Irish public companies Cement Limited and Roadstone Limited, CRH now employs more than 75,000 people across 29 countries, with market leadership positions in both North America and Europe.

The Irish corporate giant forecasts that its 2023 Ebitda will increase to $6.3 billion (€5.85bn) from $5.6 billion (€5.20bn) in 2022, with most of its earnings currently being made in the US.

CRH delisted from the Dublin market in September as part of a rejig that saw its main stock market quotation move from London to New York.

Ellen O'Regan

Ellen O’Regan

Ellen O’Regan is an Irish Times journalist.

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