Currently, there is a lot of activity in terms of mergers and acquisitions. Another mega-deal just came across the news ticker. Building materials company CRH has sealed the acquisition of building materials in the high-growth Texas market from US competitor Martin Marietta Materials for a value of 2.1 billion dollars. At the same time, the profit forecast was raised.

CRH – Building Materials Company with a Strong Market Position CRH (originally founded as Cement Roadstone Holdings) is an Irish company and one of the world’s largest building materials manufacturers. The company specializes in the manufacture, distribution, and provision of building materials for the construction industry. The company is present in all sectors of the construction industry, from infrastructure to new, residential and commercial buildings, to the maintenance, repair and renovation of the buildings. CRH is now the largest building materials producer in the United States and Europe.

The product range includes gravel, cement, asphalt and ready-mixed concrete, as well as precast forms and concrete products such as bricks, blocks and paving stones, as well as clay and glass, as well as fence, awning and roller shutter systems. The company divides its work into the European and American markets, in which the three areas of Materials, Production and Distribution are served. The European market includes the company’s activities in 17 countries, including operations in India, Israel and China.

Acquisition Strengthens Footprint in the US CRH is pursuing a strategy of growth through acquisitions. Over the years, the company has acquired several other building materials companies in order to expand its product portfolio and strengthen its global presence.

Now the Irish want to take over the cement and ready-mix concrete business of competitor Martin Marietta Materials in the US state of Texas for $2.1 billion. This includes a capacity of 2.1 million, a network of terminals and 20 ready-mix concrete plants. For 2023, the combined portfolio of assets is expected to generate a pro forma core profit of around $170 million. The transaction is expected to be completed in the first half of 2024.

Acquisition Strengthens Footprint in the US CRH is thus further expanding its market position in the US. Background: The group generates about 75% of its profits in the USA. CRH CEO Albert Manifold on the deal: “The acquisition of these high quality assets strengthens our market-leading position in Texas and increases our engagement in attractive, high-growth markets. By leveraging our cement know-how and technical capabilities, we can expand and optimize our existing presence in Texas, leading to significant synergies and self-supply opportunities.“

Profit forecast raised At the same time, management is more confident after price increases in the US and has raised the outlook. In addition, considerable public investments in infrastructure and the increasing shift of important production processes into the supply chain are expected to ensure stable demand in the most important end-user markets in North America and Europe, according to the company.

For the full year, CRH is forecasting an earnings before interest, taxes, depreciation and amortization (EBITDA) of $6.3 billion. That is $100 million more than previously expected. This would correspond to an increase of 13% compared to the record value of $5.6 billion.