ATLANTA - CRH (NYSE:CRH), a global leader in building materials solutions, has announced the acquisition of Ary Corporation, a Colorado-based provider of aggregates and building materials. This move is set to bolster CRH's Americas Materials Solutions division, increasing its aggregate reserves with over 25 sand and gravel sites, and adding several asphalt and concrete plants to its portfolio.
The acquisition, terms of which were not disclosed, includes five fixed asphalt plants, two portable ones, and nine ready mixed concrete plants, alongside paving and construction services. This addition is expected to enhance CRH's integrated solutions offerings to customers in Colorado and neighboring states.
Scott Parson, President of Americas Materials Solutions at CRH, expressed enthusiasm about the acquisition: "We are delighted to welcome all Ary Corporation employees to the CRH family. The acquisition expands our existing footprint in Colorado and presents CRH with attractive opportunities for development and growth."
CRH, listed on the New York Stock Exchange (NYSE:CRH) and the London Stock Exchange (LSE:CRH), employs approximately 78,500 people across nearly 3,400 operating locations in 28 countries. The company is recognized as a sector leader by Environmental, Social, and Governance (ESG) rating agencies and is a Fortune 500 entity.
With this acquisition, CRH continues to cement its position as North America's leading integrated supplier of aggregates, asphalt, ready mixed concrete, and construction services.
The integration of Ary Corporation is anticipated to further CRH's aim of delivering resilient and sustainable built environments through its comprehensive range of materials, products, and value-added services.
This expansion is based on a press release statement and reflects CRH's ongoing strategy to grow its operations and enhance its service offerings in key markets.
In other recent news, CRH plc, a leading global diversified building materials group, reported robust financial results for the first quarter of 2024. The company showcased significant growth in revenues and adjusted EBITDA compared to the same period last year. In addition to strong financial performance, CRH has been active in mergers and acquisitions, completing several strategic transactions.
Morgan Stanley upgraded CRH plc's stock rating from Equal-weight to Overweight, indicating a positive outlook. The firm's analysis suggests that CRH's shares are undervalued, trading at a significant discount despite the company's diversified product range and geographical presence. RBC Capital also set an Outperform rating on CRH shares, suggesting potential growth with a strategic focus on North American operations.
Truist Securities raised the price target for CRH shares based on the company's recent performance, which surpassed Wall Street's expectations. The firm maintained a Buy rating on the stock, reflecting CRH's strong market position. These are the latest developments in CRH plc's journey, reflecting the company's strategy and performance in the market.
InvestingPro Insights
CRH's strategic acquisition of Ary Corporation comes at a time when the company's financial health appears robust, as indicated by key metrics from InvestingPro. The company's market capitalization stands strong at $54.58 billion, signaling a solid position in the market.
In terms of profitability, CRH is trading at a P/E ratio of 17.39, which aligns with its near-term earnings growth and presents a more attractive investment compared to its growth, with a PEG ratio of 0.71 over the last twelve months as of Q1 2024. This suggests that the company's earnings growth rate is well balanced with its share price.
InvestingPro Tips highlight that CRH has been performing well in terms of shareholder returns, with management aggressively buying back shares and raising its dividend for 4 consecutive years. This could be an appealing factor for investors looking for companies with a strong commitment to returning value. Moreover, the company's share price is trading near its 52-week high, which might indicate market confidence in its current and future prospects.
For investors interested in further analysis and additional insights, InvestingPro offers more tips on CRH. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are currently 8 additional InvestingPro Tips available for CRH, which can be accessed to make more informed investment decisions.
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