CRH has acquired Raboni and 80 per cent of Prefaest, two French companies, for £14.3 million. The consideration is at a £4.2 million premium to the net assets. CRH now has four companies in France.
The acquisitions represent "good strategic add-ons to our existing operations, providing greater geographical coverage and expanding product ranges," said Mr Brian Hill, who heads CRH's products and distribution division in Europe. "We see opportunities for synergies at both companies."
Some £4.1 million of the Raboni consideration has been satisfied by the issue of 482,531 ordinary CRH shares at a price of 843p per share, the average mid-market price for the five days to September 21st. CRH does not normally give shares as part of the consideration but the Raboni shareholders wanted CRH shares, said Mr Myles Lee, general manager finance.
Raboni operates 10 builders merchant depots, primarily located within central Paris. Generating a turnover of £32.8 million, its customers are almost exclusively professional contractors. CRH said it is an "excellent strategic fit" with its 50 per cent owned Materiaux Service which operates 13 depots in the Ile-de-France area.
Prefaest manufactures drainage systems and pre-cast concrete vaults at its production facility, located in Maxilly-sur-Saone, near Dijon. It has annual sales of £10.7 million. The remaining 20 per cent stake is being retained by Prefaest's managing director, Mr Gerard Corberant.
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