CRH in hunt for Belgian purchase

Dublin-listed building materials multinational CRH is reported to be on the trail of another acquisition in Europe, worth an estimated €50 million.

According to Goodbody Stockbrokers' analyst Robert Eason, CRH has entered exclusive talks with Belgian company Winsol, which manufactures sunblinds, doors, window fittings and balustrades. It employs 600 people.

Mr Eason said yesterday that Winsol has yearly sales of €77 million and profits of €5.5 million.

Based on the kind of multiples that CRH has been paying for purchases such as this in Europe, Mr Eason believes it is likely to pay €40-€50 million if the Irish company closes the deal.

CRH itself would not comment on the report. Mr Eason was quoting reports in a Belgian newspaper, which in turn quoted Winsol's sole owner, Piet Vangheluwe. He expects the deal to be finalised early in 2006, and says that a price, linked to Winsol's performance over the next three years, has been agreed.

The news comes a week after the EU's competition watchdog approved CRH's plans to purchase a stake in German builders' merchant and DIY specialist, Bauking. That deal has been valued at around €65 million.

Mr Eason said yesterday that it was likely that CRH's total bill for purchases made during the year would approach €1 billion.

This includes €344 million worth of deals done in the US, where it is the biggest player in the building materials market, and a number of significant bolt-on acquisitions made in Europe. These include French player Stradal, Austrian company Quester and the soon-to-be-completed Bauking purchase.

All these deals were done in the second half of the year.

CRH is generally an active purchaser of other businesses in its sector, but its rate of acquisition slowed considerably in the first half of the year when it made purchases of just €168 million.

While analysts expressed concern at the slowdown early in the year, CRH chief executive Liam O'Mahony said it was merely that some deals were taking longer to close than others.