CRH - Acquisition spend continues with Americas Products bolt-on

Davy Research
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CRH is to acquire Advanced Environmental Recycling Technologies (AERT), a leading landscaping product manufacturer, for $117m. The deal fits neatly with the group’s aim to grow its market-leading position in building products in the Americas. Management has a stated aim to grow the business both organically and through acquisition, and we expect more of these deals in the coming months. This acquisition brings the total announced spend at CRH in 2017 to circa €600m. This step-up in acquisition spend is facilitated by the group’s financial discipline and strong cash generation. This forms a key element of our investment case for the stock.