CRH has acquired Jura Group, the second largest cement producer in Switzerland, for €425 million (£334 million) cash. Non-core assets, valued at €156.6 million are to be sold.
This is the group's second largest acquisition - after the €360 million paid for Shelley - so far this year, and brings spending to €1.2 billion. Spending for the full year is likely to be close to last year's €1.4 billion.
General manager of finance Mr Myles Lee said that, based on projections for this year, the latest acquisition should add between 1.5 cents and 2 cents annualised to earnings per share.
Mr Lee noted that construction activity in Switzerland dipped in 1997 and 1998 but this is now growing. Euro Construct figures estimate a 1 per cent growth rate this year, rising to 2-2.5 per cent in 2001 and 2002.
Negotiations have been taking place since the summer. Jura, called after the Swiss mountain range, was established in the 1880s and was put up for sale by the 50-plus family shareholders.
Earnings before interest, taxes, depreciation and amortisation of goodwill (EBITDA) for the ongoing business amount to €38.1 million on sales of €325.7 million in 2000. Earnings before interest and tax are estimated at €21.7 million. EBITDA in 1999 amounted to €34.1 million.
"The acquisition is very much in keeping with CRH's development strategy, extending the geographical reach of our existing European operations," said CRH chief executive Mr Liam O'Mahony. A "speedy integration" into the group's operation is expected.
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