CRH PLC (LON:CRH) shares jumped today on news it is expanding in North America, with the Irish building materials firm paying US$3.5bn (£2.6bn) to buy US cement maker Ash Grove Cement Co.
In early morning trading, CRH shares topped the FTSE 100 leader board, up 3.7%, or 97p at 2,752p.
Kansas-headquartered Ash Grove operates eight cement plants across eight US states, combined with extensive ready mixed concrete, aggregates and associated logistics assets across the US Midwest.
READ: CRH to sell US distribution business and buy German company Fels
For the year ended 31 December 2016, Ash Grove reported profit before tax of US$215mln and had gross assets of US$2.5bn.
Albert Manifold, CRH’s chief executive, said: "Ash Grove is an excellent addition to CRH's portfolio of businesses across North America as we seek to deploy our capital into high quality businesses that enhance our global asset base and provide opportunities to create shareholder value.”
The deal comes less than a month after FTSE 100-listed CRH sold its US distribution business to Beacon Roofing Supply Inc for US$2.63bn in cash to use the proceeds for acquisitions elsewhere.
CRH said at the time it was buying German lime and aggregates producer Fels for 600mln euros (US$712.9mln).
The Irish group – the world’s third-biggest building materials supplier – has bought 13 other smaller businesses in the first half of the year.
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