CRH invests €200m in development

CRH has spent almost €200 million on acquisitions and investments in the first half of the year as part of its development strategy.

The building materials group said it has participated in 21 acquisition and investment initiatives over the six months, and plans to buy Belgian business VVM Group.

The latest acquisition, if approved, will bring the total spend to almost €300 million and will see the European materials division gain two cement grinding mills with a combined capacity of 1.5 million tonnes in Belgium and two readymixed concrete plants in Belgium and France.

Its European material unit has already invested €40 million, while the Americas material business has made seven acquisitions and two investments totalling €98 million.

"The first six months of 2011 saw development activity continue across all six operating segments, strengthening our existing market positions and adding valuable and well-located aggregates reserves," said CRH chief executive Myles Lee.

"The VVM transaction, which is subject to regulatory approval, represents an important strategic opportunity for our existing Cementbouw cement trading and ready-mixed concrete business in the Benelux, while also complementing our products businesses in the region."

In the first half of the year, CRH completed the sale of its insulation and climate control business, along with the disposal of a 35 per cent associate investment in the Trialis distribution business in France.

The group said it made €345 million from the sales.

In 2010, the group's total acquisition and investment spend for the year was approximately €536 million.