Building materials group CRH has bought German concrete pavement and landscape walling manufacturing EHL Group. The deal cost CRH's Europe Products and Distribution Division €155.4 million in cash, including assumed debt.
The EHL Group has a network of 32 production facilities in Germany and one in Poland. It has a workforce of 1,350.
The company reported sales of 4235.4 million last year while its adjusted trading profit amounted to €14.6 million.
CRH said that EHL has achieved consistent profitability, despite the difficult economic circumstances in Germany and the prolonged severe downturn in the construction sector following the post-unification boom. CRH said this was because 65% of its turnover is derived from the repair, maintenance and improvement sector.
Commenting on the deal, Brian Hill, Group Managing Director of CRH Europe Products and Distribution said EHL complements CRH's existing operations in the Benelux and should serve as a platform for further growth in Germany and the surrounding countries.
Shares in CRH gained two cent to close at €19 in Dublin.
