CRH PLC (LSE:CRH, NYSE:CRH), the building materials supplier which left the FTSE 100 in September after moving to a primary US listing, reported a continuation of growth trends in the third quarter and a US$2.1 billion acquisition of Texas-based cement and ready-mixed concrete assets from Martin Marietta Materials.
The acquisition, which comprises a cement plant, a network of terminals on the eastern gulf coast of Texas and a portfolio of 20 ready-mixed concrete plants, is expected to generate pro-forma 2023 underlying profits (EBITDA) of around US$170 million.
CRH chief executive Albert Manifold said the deal "further strengthens our market leading position in Texas and increases our exposure to attractive, high-growth markets".
It is by far the largest of 17 acquisitions the group has made in the year to date, the rest totalling US$0.7 billion, the company said in a separate third-quarter trading statement.
This also revealed that sales and EBITDA growth had not been knocked off course from the respective 8% and 14% seen in the first half of the year, with full-year EBITDA guidance nudged up to circa US$6.3 billion from the previous US$6.2 billion.
As the ongoing US$3 billion share buyback program continues, net debt is expected to grow to around US$7 billion from US$5.1 billion at the end of last year, meaning the ratio of net debt to EBITDA ratio is expected to rise to around 1.1 times from 0.9 times.
Shares in CRH rose 2% in London by early afternoon and were heading for almost a 3% gain to $60.47 in New York's pre-market trading.