CRH snaps up US cement producer

CRH has struck a deal to acquire Kansas-based Ash Grove Cement Company for $3.5bn.

The acquisition, which will be paid for using the FTSE 100 building materials group's existing funds, is expected to close around the end of the year 2017.

Operates cement plants in eight US states, combined with extensive readymixed concrete, aggregates and associated logistics assets across the US midwest, Ash Grove reported a $215m profit before tax in calendar 2016.

CHR chief executive Albert Manifold 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.

"We welcome the Ash Grove team to CRH and look forward to further developing our longstanding relationship as part of one company."