Acquisition

CRH PLC
22 March 2004

                       N  E  W  S     R  E  L  E  A  S  E

                                                                 22nd March 2004





                            CRH AGREES TO BUY 49% OF

                  MAJOR PORTUGUESE BUILDING MATERIALS PRODUCER





CRH plc, the international building materials group, today announced that it has
reached agreement to acquire a 49% equity stake in Secil, a major Portuguese
manufacturer of cement and readymixed concrete. Secil is a wholly-owned
subsidiary of Semapa, a publicly quoted company in Portugal. Semapa and CRH have
also agreed the terms of a shareholder agreement under which they will have
joint management control of Secil. The agreement is based on an enterprise value
of €900 million for 100% of Secil, including an estimated €44 million relating
to Secil's investment in associated undertakings. Under the assumption of net
debt at closing of €140 million, the cash consideration for CRH's 49% share of
Secil will be €372 million, on which goodwill of €45 million arises. Subject to
the satisfactory outcome of the due diligence process and obtaining approval
from the European Commission, the transaction is expected to close by mid-year.



In Portugal, Secil operates three integrated cement plants with total capacity
of 4.2 million tonnes, 41 readymixed concrete plants, 6 hard rock quarries and
has access to total permitted stone reserves of approximately 550 million
tonnes. The company also produces precast concrete and mortars in Portugal.
Secil is a prominent producer of cement in southeastern Tunisia where it has one
plant with capacity of 1.1 million tonnes. These operations employ approximately
2,000 people.



In 2003, Secil produced 4.3 million tonnes of cement (3.2 million in Portugal
and 1.1 million tonnes in Tunisia), and also produced 2.2 million cubic metres
of readymixed concrete and 2.8 million tonnes of aggregates in Portugal. 2003
results were impacted by a significant contraction in Portuguese cement demand
and an overall decline in construction activity in Portugal. Excluding its share
of results of associated undertakings, Secil reported consolidated sales of €418
million in 2003 (2002: €491 million) and profit before interest, tax,
depreciation and amortisation (EBITDA) of €123 million (2002: €172 million).
Operating profit (EBITA) for 2003 amounted to €69 million (2002: €117 million).



In addition to its consolidated operations, Secil has a number of investments in
associated undertakings in Portugal and Lebanon and has a management contract to
operate a cement grinding facility in Angola.



Commenting on the proposed transaction, Liam O'Mahony, Chief Executive of CRH
plc, said:



'This transaction presents a unique strategic opportunity for the Europe
Materials Division. It offers a leadership position in the attractive Portuguese
cement market, which has traditionally had high per capita consumption, and also
provides development opportunities in Tunisia and Lebanon. The partnership
between CRH and Semapa will result in a strong combination of knowledge,
experience and resources which will facilitate the expansion of Secil's
businesses across the industry supply chain, particularly as the general economy
in Portugal recovers and construction activity increases.'



Contact CRH at Dublin 404 1000 ([phone])



Liam O'Mahony Chief Executive

Myles Lee Finance Director

Declan Doyle Managing Director, Europe Materials

Maeve Carton Group Controller



CRH plc, Belgard Castle, Clondalkin, Dublin 22, Ireland TELEPHONE [phone]
                               FAX [phone]

   E-MAIL [e-mail] WEBSITE www.crh.com Registered Office, 42 Fitzwilliam
                           Square, Dublin 2, Ireland


                      This information is provided by RNS
            The company news service from the London Stock Exchange