Shares in CRH jumped in Dublin trade this morning after it said it would buy US cement maker Ash Grove Cement in a $3.5 billion deal to grow its North America business.
Ash Grove operates eight cement plants in as many US states and owns concrete, aggregates and associated logistics assets across the US midwest.
Ash Grove said it estimated to be valued in the range of about $449 to $454 per share based on its balance sheet as of 30 June.
The deal comes less than a month after the building materials company sold its US distribution business to Beacon Roofing Supply for $2.63 billion in cash for acquisitions elsewhere.
CRH said at the time it was buying German lime and aggregates producer Fels for €600m.
The company also bought 13 other smaller businesses in the first half of the year.
CRH is the world's third-biggest building materials supplier and the largest producer of asphalt and the third-largest producer of construction aggregates in the US.
The proposed transaction, which is expected to close around the end of the year, will be financed through existing financial resources, CRH said in a statement.
The company is expected to benefit from US President Donald Trump's promise to boost infrastructure spending as a means to create jobs in the US.
"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," commented its chief executive Albert Maniford.
Shares in the company moved sharply higher in Dublin trade today.
