Building materials group CRH is buying US asphalt business, Ashland Paving and Construction (APAC) for $1.3 billion (€1 billion), which is its biggest acquisition.
CRH said goodwill arising on the transaction is estimated at around $450m (€348.7m). CRH will finance the acquisition using debt.
Completion of the purchase, which has received competition clearance, is anticipated before the end of August.
CRH said the deal will offer annual margin improvement of $20m, rising to $40m within three years.
CRH first announced in June this year that its US unit Oldcastle Materials had entered into exclusivity talks with Ashland, the speciality chemicals group that owns the business, that may lead to the acquisition of APAC.
The deal is CRH's biggest purchase ever, ahead of the €693m it paid for the Dutch DIY business Cementbouw, in 2003.
Headquartered in Atlanta, APAC, is an aggregates, asphalt and heavy highway construction company with around 9,700 employees and operations in 14 mid-western and southern states.
In the year ending June 2006 it had sales of $ 2.9 billion with profit before interest, tax, depreciation and amortisation of $220m.
APAC's President Kirk Randolph will remain with APAC as well as key operational management.
CRH said the acquisition is a major expansion for the company into new materials markets in mid-western and southern US states.
