Major Materials Business Acquired in Ohio

CRH PLC
24 February 2000


CRH ACQUIRES MAJOR MATERIALS BUSINESS IN OHIO


CRH plc, the international building materials group, announces the purchase by
the Oldcastle Materials Group of the stock of The Shelly Company for a
consideration of US$362 million (Euro 359.5 million). No goodwill arises on
the acquisition. Adjusting for Shelly cash balances at acquisition and for
higher average working capital  gives an effective cost of US$350.6 million
(Euro 348.2 million).

The Shelly Company is an integrated aggregates, asphalt and paving contractor
headquartered in Thornville, Ohio some 40 miles east of Columbus the State
capital.  Shelly's main market positions are in Columbus, southern Ohio and in
West Virginia. Operations include three quarries,  10 active sand and gravel
pits, 59 fixed asphalt plants as well as 5 portable asphalt plants. In
addition, Shelly operates two bitumen terminals located in Columbus (rail) and
on the Ohio River (barge) to supply its own needs. 

Both Ohio and West Virginia are benefiting from the increased Federal highway
funding provided under the Transportation Equity Act for the 21st Century
(TEA-21) with projected increases of 37% and 41% respectively  in average
funding levels for the period 1998/2003 compared with 1992/1997. 

Shelly's aggregate reserves amount to over 200 million tons. In the year to
March 1999, seven million tons of aggregates and seven million tons of asphalt
were produced. Sales in the year to March 1999 amounted to US$323 million, on
which adjusted profits of US$63 million before depreciation, goodwill
amortisation and interest were reported. Adjusted trading profits, after
depreciation of US$17 million, amounted to US$46 million.  Despite currently
rising liquid asphalt prices, a higher outturn is expected for the year to
March 2000  as a result of increased highway expenditure following the
mid-1998 approval of TEA-21 and a large asphalt acquisition in Columbus which
was completed in December 1998. 

Dick Shelly, Chairman of The Shelly Company, and Mark Shelly, President, will
continue to run the business as a stand-alone unit within the Oldcastle
Materials Group.

Commenting on the Shelly  acquisition, Tom Hill, Chief Executive of the
Oldcastle Materials Group, said:  'Shelly represents an excellent opportunity
to acquire the leading, vertically integrated materials company in the growing
southern Ohio and West Virginia markets.  Following the US$422 million
Thompson-McCully July 1999 acquisition in Michigan it consolidates Oldcastle
Materials Group's position as a major player in the fragmented Midwest
materials market, with significant expansion potential.' 



Contact CRH at Dublin 404 1000 ([phone])

Liam O'Mahony, Chief Executive 
Harry Sheridan, Finance Director          
Myles Lee, General Manager Finance

       

CRH plc, Belgard Castle, Clondalkin, Dublin 22, Ireland  TELEPHONE
+353.1.4041000  FAX [phone]
E-MAIL [e-mail] WEBSITE www.crh.ie  Registered Office, 42 Fitzwilliam
Square, Dublin 2, Ireland