Acquisition

CRH PLC
03 January 2007



3 January 2007


CRH ANNOUNCES ADDITIONAL SECOND HALF 2006 ACQUISITION INITIATIVES OF
EURO 400 MILLION BRINGING FULL YEAR ACQUISITION SPEND TO A
RECORD EURO 2.1 BILLION


CRH plc, the international building materials group, today announces 31
acquisition initiatives totalling euro 400 million undertaken during the second
half of 2006.

These initiatives are in addition to  the acquisition of a 50% stake in American
Cement Company for a cash outlay of US$ 50 million (euro 39 million) announced
on 1 August 2006 and the acquisition of Ashland Paving & Construction (APAC),
announced on 21 August 2006, for US$ 1.3 billion (euro 1.0 billion). Taking into
account subsequent selective disposals of non-core APAC asphalt and contracting
activities for US$195 net of tax, announced on 12 December 2006, total net
acquisition spend for the second half of 2006 amounted to approximately euro 1.3
billion.

This combined with a first half acquisition spend of euro 0.8 billion results in
a record net acquisition spend of approximately euro 2.1 billion for 2006.

Commenting on these developments, Liam O'Mahony, CRH Chief Executive, said:

'Development momentum in 2006 has been very strong with a total 69 acquisitions
concluded, including APAC, the largest single transaction completed by the
Group. This record euro 2.1 billion acquisition spend will be an important
factor in further driving growth across all CRH divisions.'

The initiatives contained in this Development Strategy Update are as follows:

Europe Materials -  4 acquisitions and 1 joint venture investment for euro 47
million

Four bolt-on transactions were completed, further expanding existing operations
in Ireland, eastern Europe and Portugal.  In addition,  the Division invested in
bitumen storage facilities in Ireland.

Europe Products -  7 acquisitions for euro 121 million

The Concrete Products group completed CRH's first acquisition in Italy and
acquired three other businesses in Germany, Belgium and France. The Building
Products group expanded its construction accessories platform with the
acquisition of an Irish business; entered a new niche sector by acquiring a
leading Dutch roller shutter and awnings business; and purchased a fencing
business in the UK.

Europe Distribution -  3 acquisitions for euro 18 million

Three acquisitions in the Netherlands, Switzerland and France added a total of
four builders merchants outlets to our existing branch network in Europe.

Americas Materials - 7 acquisitions for euro 69 million

Four bolt-on acquisitions were completed by Americas Materials in the Central
region and a further three acquisitions strengthened its operations in the West.

Americas Products - 5 acquisitions for euro 53 million

The Precast Group completed two acquisitions, one in Georgia and one in
California. The Architectural Products Group also completed two acquisitions, in
Iowa and North Carolina.  The Glass Group acquired a leading Toronto-based
manufacturer of curtain wall systems.

Americas Distribution - 4 acquisitions for euro 92 million

Three interior product acquisitions were completed by the Distribution Group;
one in Texas and two in Florida. A roofing and siding distributor on the
Hawaiian Islands was also acquired. These four transactions added 12 locations
to the Distribution Group's existing  branch network.

Contact at Dublin 404 1000  ([phone])
Liam O'Mahony                Chief Executive
Myles Lee                    Finance Director
Eimear O'Flynn               Head of Investor Relations
Maeve Carton                 Group Controller


Europe Materials: euro 47 million

The Europe Materials Division completed four acquisitions and a joint venture
investment at a total cost of euro 47 million during the second half of 2006.
Incremental annual sales arising from these transactions amount to euro 30
million.


Ireland

The Group's activities in Northern Ireland, operating under the Northstone
brand, span a broad portfolio of products including readymixed concrete and
associated products, building and engineering services, aggregates, asphalt and
precast units.  The acquisition in July of Salmor, a leading manufacturer of
frames, covers and other accessories for the underground cable and water supply
infrastructure network, represents an opportunity for Northstone to expand into
other related markets in Ireland and the United Kingdom.  Salmor has annual
sales of euro 12 million and operates from a single facility in Lurgan, Co.
Armagh.

In December, a newly-formed joint venture in which CRH and Colas Teoranta each
have a 50% share acquired bitumen storage terminals in Dublin and Belfast ports.
 CRH is a major consumer of bitumen for its blacktop operations in Ireland.
These strategically located storage facilities will allow the group to enter
into longer-term supply agreements and they also provide the opportunity to
utilise storage capacity to take advantage of low season bitumen price
discounts.


Poland

In July, the Division acquired three concrete paving plants in Poland, from
Jadar. These paving assets, which are located in Warsaw, Kielce and Rzeszow and
generate annual sales of euro 13 million,  expand and complement CRH's existing
paving operations in Poland.


Ukraine

The acquisition of Bekhovsky, an aggregates producer located in Ukraine's
Zhytomer region, 140 kilometres northwest of Kiev, was completed in August and
complements the acquisition in February of the Popeliansky quarry.  With annual
sales of euro 4 million, Bekhovsky facilitates further expansion into the Kiev
aggregates market.


Portugal

In September, CRH's joint venture Secil, in which the Group has a 49% stake,
acquired the remaining 50% of Ecorresiduos, a slag grinding plant located in the
Lisbon area.  Secil intends to develop this company, which has annual sales of
euro 1 million, into a slag and fly-ash trading company.


Europe Products : euro 121 million

Europe Products completed seven acquisitions at a total cost of euro 121 million
in the second half of the year. The annual incremental sales arising from these
transactions amount to euro 130 million.


Concrete Products

In July, the Concrete Products group acquired Rhebau, a manufacturer of water
treatment and sewerage products based in North Rhine-Westphalia in Germany with
annual sales of euro 10 million.  Located close to the Dutch and Belgian
borders, Rhebau will form part of the group's Architectural Products Benelux
operation and provides an excellent fit with its water treatment activities
which are set to benefit from increasing water conservation regulations across
Europe.

July also saw the purchase of Oeterbeton, a precast concrete manufacturer based
in Belgium.  This acquisition, with annual sales of euro 25 million and three
state-of-the-art production facilities, strengthens the group's position in the
Benelux flooring and hollow wall market and extends the current product offering
to encompass pre-stressed shuttering slabs.

In August, the group acquired Chapron Leroy, a utility products manufacturer
producing rainwater boxes, fences and other niche products and generating euro 6
million in annual sales from a single location in the northwest of France.

CRH's entry into Italy was marked in October with the acquisition of Record, a
leading concrete landscaping manufacturer in the Lombardy and Piedmont region
with annual sales of euro 23 million.  Based in the economically strong north of
the country and operating from three locations, Record provides an excellent
base in Italy as well as offering possibilities for best practice and
benchmarking with existing Concrete Products operations in Europe.


Building Products

The acquisition in July of Construction Accessories Ltd. (CAL), an Irish
distributor of metal and plastic construction accessories, further develops and
grows the group's Construction Accessories platform.  With annual sales of euro
8 million, CAL operates from a single location near Dublin and sells throughout
the Republic of Ireland.

In August, the Building Products group acquired AVZ, a leading developer,
assembler and distributor of roller shutter and awning systems in the
Netherlands.  With annual sales of euro 54 million, the transaction represents
an important first step in building a Europe-wide presence in this niche sector,
which has close strategic links with the Group's existing Daylight & Ventilation
and Fencing & Security activities.

The purchase in September of Tangorail, the UK market leader in non-welded
railing systems, further advances the Fencing & Security group's strategy to be
a leading player in outdoor security solutions for the non-residential market.
With annual sales of euro 4 million, the company operates from a single
production facility in Walsall (UK Midlands).


Europe Distribution: euro 18 million

Europe Distribution completed three transactions during the second half of 2006
in the Netherlands, Switzerland and France adding a total of 4 builders
merchants branches to its existing network with annual incremental sales of euro
49 million.

In July, Kachelhuus a single-branch builders merchant in Ede in the east of the
Netherlands with annual sales of euro 6 million was acquired.

The acquisition, also in July, of BMH Hagendorf AG and Dennler AG added a
further two branches to our network of builders merchants in German-speaking
Switzerland.  With combined annual sales of euro 35 million, these two branches
offer opportunities for internal efficiencies and synergies.

In August, the Distribution group acquired Etrechy Materiaux, a single-branch
builders merchant located in the Ile-de-France region. With annual sales of euro
8 million, Etrechy represents an excellent geographical fit with the group's
existing operations in Ile-de-France.


Americas Materials: euro 69 million

The Americas Materials Division completed seven bolt-on acquisitions in the
second half of 2006 at a combined cost of US$ 87 million (euro 69 million). The
annual incremental sales arising from these transactions amount to US$ 55
million.


Central

Four acquisitions were completed in the Central region contributing annual sales
of US$ 18 million.

In August, the Shelly group concluded two small transactions in the Columbus
region of Ohio. Certain assets of Baird Concrete Products, a readymixed concrete
producer and block manufacturer located in Coshocton, together with certain
assets of Tri-Son Concrete, a readymixed producer located in Zanesville (both
locations within 60 miles of Columbus, Ohio), were acquired. With combined
annual sales of US$ 5 million, these acquisitions provide additional cost
synergies and further readymixed concrete market penetration for Shelly's
existing business in the area.

Early in 2006, an Industrial Minerals group was established within the Central
region as part of Americas Materials' strategy to exploit the value of existing
high-calcium limestone and dolomitic reserves with a focus on expansion in the
industrial mineral sector both organically and through acquisition.  In October,
two acquisitions were completed by this new group.  Fletcher Limestone,
operating from one location in North Carolina, focuses on the mining, crushing
and screening of various stone sizes for the local aggregates and decorative
stone market as well as the processing of white stone in various sizes for a
range of industrial applications including paints, plastics and vinyl.  From its
Georgia limestone crushing facility, H&S Whiting supplies calcium carbonate to a
variety of industries including carpet, asphalt roofing and animal feed.   With
combined annual sales of US$ 13 million, both acquisitions provide additional
fine-grinding capacity for white products in existing CRH markets whilst also
offering increased geographic coverage.


West

Three bolt-on acquisitions in the West region strengthen and complement existing
activities and provide incremental annual sales of US$ 37 million to this
regional grouping.

In September, a 110-acre site was acquired from Gosney & Sons, an aggregates and
construction business in Bayfield, Colorado.  With access to 3.7 million tons of
aggregates reserves and annual sales of US$ 3 million, the acquisition secures
the reserves requirements of the existing Four Corners materials business in the
south-western Colorado and north-western New Mexico markets.

Summit Stone and Consolidated Concrete, located in Boise, Idaho and acquired in
October, supplies aggregates and produces readymixed concrete with a primary
focus on the commercial sector.  With US$ 18 million in annual sales, the
transaction expands Americas Materials' existing presence in Idaho.  October
also saw the acquisition of Egge Sand & Gravel, a vertically integrated
aggregates, asphalt and construction company based in Eugene, Oregon.  With
annual sales of US$ 16 million, this acquisition represents a significant
addition to recently-acquired businesses in the region as well as providing
purchasing benefits.


Americas Products: euro 53 million

Five acquisitions were completed in the second half of 2006 at a combined cost
of US$ 68 million (euro 53 million) yielding annual incremental sales of US$ 88
million.


Precast Group

McArthur Concrete Products, a precast drainage and manhole products manufacturer
with annual sales of US$9 million, was acquired in August.  The company operates
from a single location in Acworth, Georgia and primarily serves utilities and
contractors for underground applications. Its location northwest of Atlanta
complements our existing precast business in the Atlanta area.  In December, the
group acquired BES Concrete Products, a meter box manufacturer with annual sales
of US$ 9 million. The company manufactures from a single location in Tracy,
California and its primary customers are electrical distributors in the Northern
and Central valley regions of California.  BES's location and product-mix
complement our existing meter box business in Madera, California which primarily
sells to waterworks distributors in the same regions.


Architectural Products Group (APG)

In July, APG acquired the assets of Rhino Block & Materials, a masonry
manufacturing and distribution company operating from a single block plant
located in West Des Moines, Iowa.  Rhino adds annual sales of US$ 13 million and
a well-run facility to APG's existing operations in the Midwest and provides a
platform from which to grow the Belgard hardscapes business in Iowa.   In
August, the group acquired certain assets of W.P. Rose Supply, a distributor of
block, brick and other construction supplies serving eastern North Carolina,
adding annual sales of US$ 7 million and an established, centrally-located
warehouse and sales yard to APG in the region.


Glass Group

In August, the Glass Group acquired Antamex, a leading Toronto-based
manufacturer of high-performance curtain wall systems and architectural panels
for commercial, institutional and multi-storey condominium construction.  Annual
sales amount to approximately US$ 50 million.  Operating from three
manufacturing facilities in Canada and with offices in Canada and London,
Antamex is an excellent strategic fit for the Glass Group, combining
high-performance curtain wall and architectural panel capabilities with the
Glass Group's existing product breadth.


Americas Distribution: euro 92 million

Four acquisitions were completed by the Americas Distribution group (Allied
Building Products) in the second half of 2006 at a combined cost of US$ 118
million (euro 92 million) yielding annual incremental sales of US$ 216 million
and enlarging Allied's network by 12 branches.

Three of the acquisitions, all completed in October, distribute interior
products.  Builders Gypsum Supply, with five branches and annual sales of US$
145 million, is one of the largest distributors of interior products in Texas.
This acquisition is Allied's first in Texas; the combination of positive market
conditions and population growth trends in the region will give Allied a good
base from which to grow the business.   Lakehill Ventures is a two-branch
interior products distributor based in western central Florida with annual sales
of US$ 16 million.   All-Star Building Supplies, a single-branch distributor of
stucco, lath and plastic trim based in southern Florida, has annual sales of US$
6 million.  All-Star's products are used for exterior cladding applications and
the business is being merged with Allied's existing interior products businesses
in the area.

RRS, Inc., acquired in November, is the largest roofing and siding distributor
on the Hawaiian Islands.  With four branches and annual sales of US$ 49 million,
RRS is Allied's first roofing and siding acquisition in Hawaii.


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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



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