Building materials group, CRH, is to acquire the distribution and building products operations of Dutch company Cementbouw for €646 million, it emerged today.
Chief executive, Mr Liam O'Mahony, said: "Cementbouw has long been an acquisition target for CRH and represents an excellent strategic fit with CRH's existing operations in the Netherlands."
"It would firmly establish the enlarged group as a major national player in both the retail DIY and wholesale merchanting sectors and strengthen CRH's depth and range of manufactured clay and concrete products," he said.
In a statement today CRH said it has also reached agreement to purchase a 45 per cent stake in Cementbouw's materials operations at a cost of €47 million.
"Completion of this acquisition would bring our cumulative spend in 2003 on acquisitions and investments to over €1.2 billion," the company said.
Cementbouw's combined distribution and building products operations reported an operating profit €73 million on sales of €790 million last year.
Cementbouw's operations, which comprise both DIY and builders merchanting activities, are concentrated primarily in the northern and northeastern provinces of the Netherlands.
The purchase will add 54 DIY stores to CRH's existing network of 75 stores in the Benelux countries.
At 12.30 p.m. today CRH shares were trading 17 cents down at €15.67.
