CRH moves into Israel

Building materials group CRH has spent more than $120 million (&€8364;134 million) on acquisitions in Israel and the US.

The Israeli purchase of a 25 per cent interest in Nesher Cement, Israel's only cement producer, is the group's first foray into the Middle Eastern market.

CRH has provided equity finance of $47.8 million for the deal, with a balance of $97.1 million coming from Israeli investment house FIBI. The Irish group has negotiated an option to purchase a further 25 per cent of Nesher before 2004.

The outright acquisition of Hallet Materials and Des Moines Asphalt and Paving in Iowa adds a new state to CRH's North American portfolio. Hallet is an aggregates company and Des Moines Asphalt and Paving is central Iowa's main asphalt paving contractor.

The combined profits of the two unrelated companies were $12.6 million in 2000, and CRH expects continued highway investment in the state to support profitability in the future.

Speaking yesterday, CRH finance director Mr Harry Sheridan said that the American and Israeli moves were "very different" from each other.

The two Iowa companies were, he said, very much in line with CRH's existing US strategy. In light of ongoing political tensions in the Middle East, Mr Sheridan said that entry into the Israeli market involved a greater risk.

In Europe, CRH continues to negotiate for the purchase of parts of Finnish company Addtek.

Mr Sheridan said that CRH was now interested in Addtek operations in Norway and Sweden, and that if a deal was to be struck, it was likely to happen before the end of this year.