Saturday, December 9, 2023

Farrans owner CRH in $2.1 billion Texas acquisition

Must read

Gary McDonald Business Editor

21 November, 2023 13:16

DUBLIN-headquartered building materials producer CRH has completed a $2.1 billion acquisition of building materials assets in the high-growth Texas market and also upgraded its full year core profit guidance.

In a trading update CRH – which garners about three quarters of its profits in the US – said it expects full-year earnings before interest, tax, depreciation and amortisation of $6.3 billion compared to the $6.2 billion forecast in August.

That would amount to a 13% rise on the record $5.6 billion reported last year and follows a 14% year-on-year increase both in the third quarter and so far this year.

CRH, which employs 73,000 people at 3,200 locations in 29 countries, is the parent company of Northstone (NI) Ltd, one of the largest construction and building materials groups in Northern Ireland.

It has three operating divisions in the north in Farrans Construction, Northstone Materials and CUBIS Systems.

Earlier this year The Irish News revealed that CRH had put its Farrans operation on to the open market.

In a statement at the time it said: “While no final decision has been made, following a strategic review, CRH is exploring the potential divestment of its construction contracting business, Farrans.

“The business, which has a successful track record, a strong market presence and a skilled workforce, continues to operate as normal across all its projects. Farrans will continue to update its employees throughout the process.”

Any potential sale has yet to be confirmed, and indeed Farrans Construction – which employs more than 600 people at offices in London, Cambridge, Edinburgh, Leeds and Belfast – continues to operate as normal and win contracts.

Indeed earlier this month it was appointed by Inspired Villages to begin construction of a £45m retirement community in Sonning Common, South Oxfordshire.

Farrans’ first phase of works will include 73 high-quality, bespoke homes for over 65s and a state-of-the-art wellness suite within the village centre.

The Sonning Common scheme will provide 133 homes for around 150 over 65s, as well as facilities including a restaurant, cafe, hairdressers, library and craft rooms and a wellness centre comprising a swimming pool, steam room, treatment rooms and a gym with a fitness studio.

Latest article