ATLANTA - Oldcastle Infrastructure, a subsidiary of CRH (NYSE:CRH) Company, has expanded its manufacturing capabilities and product offerings in Northern California through the acquisition of Cook Concrete Products. The transaction, announced today, allows Oldcastle Infrastructure to fill a geographic gap and enhance its service delivery in the region.
Cook Concrete Products, which has been operational since 1955, specializes in precast structures for underground use in various markets, including energy, water, and communications. Its customer base spans across Northern California, Oregon, and Nevada. This acquisition is set to bolster Oldcastle Infrastructure's presence in these areas.
Jason Jackson, President of Oldcastle Infrastructure, emphasized the strategic significance of the acquisition, noting that Cook Concrete's manufacturing capabilities and product range will increase the company's ability to deliver value to customers in Northern California. He also highlighted Cook Concrete's established market reputation and its history of providing high-quality products and services.
Matt Clemson, President of West Region Pipe & Precast and Stormwater at Oldcastle Infrastructure, remarked on Cook Concrete's extensive market knowledge and solid customer relationships. He stated that the addition of Cook Concrete will strengthen Oldcastle's solutions offering and position the company as a strategic partner of choice for its customers.
Oldcastle Infrastructure is recognized as a leading provider of building materials, products, and services for infrastructure projects across several North American market sectors. CRH, its parent company, operates globally and is known for its market leadership in North America and Europe. CRH employs approximately 78,500 people at around 3,390 operating locations in 28 countries. The company is listed on the New York Stock Exchange (NYSE:CRH) and the London Stock Exchange (LON:LSEG) (LSE:CRH).
The financial terms of the acquisition were not disclosed in the press release statement. This expansion is expected to enhance Oldcastle Infrastructure's product and service capabilities in a key regional market, aligning with the company's growth strategy.
In other recent news, CRH plc has reported a robust financial performance in its Q3 2024 results. The company saw a 4% increase in total revenues, reaching $10.5 billion, and a 12% increase in adjusted EBITDA, amounting to $2.5 billion. Earnings per share also rose by 10% compared to the previous year. These strong results were primarily due to effective cost management, positive pricing momentum, and strategic acquisitions, including a significant $2.1 billion acquisition in Texas. The company also declared a new quarterly dividend of $0.35 per share, marking a 5% annual increase. CRH plc reaffirmed its full-year adjusted EBITDA guidance of $6.87 billion to $6.97 billion, and projected net income between $3.78 billion and $3.85 billion. Lastly, the company announced that Albert Manifold will be retiring, with Jim Mintern set to take over as CEO.
InvestingPro Insights
CRH's acquisition of Cook Concrete Products through its subsidiary Oldcastle Infrastructure aligns well with the company's strong market position and recent financial performance. According to InvestingPro data, CRH boasts a substantial market capitalization of $67.58 billion, reflecting its significant presence in the construction materials industry.
The company's growth strategy, as evidenced by this acquisition, is supported by solid financial metrics. CRH's revenue for the last twelve months as of Q3 2024 stood at $35.39 billion, with a gross profit of $12.49 billion and an impressive gross profit margin of 35.3%. These figures underscore the company's ability to generate substantial income from its operations, which could be further enhanced by strategic acquisitions like Cook Concrete Products.
InvestingPro Tips highlight CRH's strong market performance, with the stock trading near its 52-week high and showing a remarkable 74.55% price total return over the past year. This positive momentum suggests investor confidence in CRH's growth strategy and market expansion efforts.
Additionally, CRH has been rewarding its shareholders, with an InvestingPro Tip noting that the company has raised its dividend for four consecutive years. This commitment to shareholder returns, coupled with aggressive share buybacks, indicates a balanced approach to capital allocation alongside its expansion initiatives.
For investors seeking more comprehensive insights, InvestingPro offers 14 additional tips for CRH, providing a deeper understanding of the company's financial health and market position.
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