CRH, Ireland’s most prolific acquirer of businesses, has undergone a significant change over the past decade. The company has embraced a bold,no-holds-barred approach,shedding it’s conventional conservatism to focus on strategic growth and value creation. This shift has been driven by a relentless pursuit of efficiency and a commitment to maximizing shareholder returns.
Under the leadership of Albert Manifold, who recently stepped down after 11 years as CEO, CRH invested over $25 billion in acquisitions. At the same time,the company divested more than $14 billion in non-core assets,including two major distribution businesses in the US and Europe. This disciplined strategy has positioned CRH as a leaner, more focused institution, ready to capitalize on emerging opportunities.
jim Mintern, Manifold’s successor, is expected to continue this approach. A seasoned executive with deep roots in CRH’s Irish operations,Mintern brings a wealth of experience to the role. His tenure as group chief of staff and CFO has prepared him to steer the company thru its next phase of growth.
North America, which CRH ventured into in 1978 through the purchase of a concrete products company in Utah, now accounts for about three-quarters of group earnings.
this focus on North America has sparked discussions among investors.Analysts at Bank of America (BoA) recently highlighted the possibility of CRH spinning off its non-North American operations to concentrate on its most profitable market. The US now generates approximately 75% of the company’s earnings before interest, tax, depreciation, and amortization (EBITDA), which reached an notable $6.97 billion in 2024.
The decision to relocate CRH’s primary stock market listing to New York in 2023 underscores the importance of the US market. This move marked the end of the company’s long-standing Dublin listing, which dated back to 1936 when Irish Cement first went public. the shift reflects CRH’s confidence in the growth potential of its North American operations.
BoA estimates that CRH’s international unit, which includes Europe Materials Solutions and operations in Australia and the Philippines, is valued at $13.3 billion. This represents 16% of the company’s total valuation of $82.3 billion. Ken Rumph, an analyst at Goodbody stockbrokers, notes that the consolidation of CRH’s European divisions into a single international unit has fueled speculation about a potential divestment of non-US assets, including its legacy Irish business.
However, analysts believe such a move is unlikely in the near term. “At the moment, it seems like everything is great in North America, as infrastructure spending is strong there,” said Rumph. He added,“But there will be a recovery at some stage in Europe. In addition,it isn’t as expensive to buy assets outside of the US.”
As CRH looks ahead to 2025, the company remains committed to its disciplined acquisition strategy and continuous business improvement. With a strong foothold in North America and a growing international presence, CRH is well-positioned to navigate the challenges and opportunities of the global market.
CRH’s global Expansion and Strategic Moves: A Deep Dive
CRH, a leading construction materials company, has been making waves in the global market with its strategic expansions and innovative approach. According to a recent citigroup report,Europe has significant potential for growth in pricing,presenting ”some upside for CRH.” The company is also poised to benefit from the unavoidable construction work in war-torn Ukraine, a country it entered 25 years ago.
Geographical diversification has been a key strategy for CRH, allowing the company to leverage expertise and knowledge across different markets. Rumph,a company insider,highlighted this advantage: “Europe woudl have been ahead of America,for example,in terms of using precast products for infrastructure projects,rather than building on-site — partly out of necessity as of the cost of labour.” He added, “CRH was able to bring this expertise across the Atlantic where labour, increasingly, has been an issue in recent times.But learnings work both ways.”
“Shares in the company have drifted lower since then, in line with the wider sector, amid concerns that US president-elect Donald Trump’s threatened tariffs against a host of trading partners will stoke inflation and keep interest rates relatively higher for longer.”
In a bold move last year, CRH significantly increased its presence in Australia by acquiring a 53% stake in local building materials group Adbri for $700 million. This acquisition, unusual for a company considering a split, underscores CRH’s commitment to expanding its footprint in key markets.
Mintern, former chief financial officer, led the transition to a New York primary listing of the stock. This move resulted in a remarkable 90% jump in shares,reaching an all-time high of $104.32 early last month. The shift to a US listing has benefited CRH, as US-listed companies tend to trade at higher levels relative to earnings compared to those listed in Europe.
however, shares have since drifted lower, aligning with the wider sector’s concerns over US president-elect Donald Trump’s threatened tariffs. These tariffs are feared to stoke inflation and maintain higher interest rates for an extended period.
Citigroup analysts expect CRH to continue narrowing the valuation gap with US rivals. They note that investors value North Carolina’s Martin Marietta Materials and Alabama-based Vulcan Materials at about 15 times EBITDA, compared to a ratio of 10 for the Irish company.
To achieve this, Mintern faces the challenge of convincing Wall Street of the benefits of CRH’s integrated model. The company has evolved from primarily selling cement and base materials, where it was a price taker, into offering full-scale construction services with more control over pricing. this transformation has widened its EBITDA margin from less than 10% in 2013 to over 23% for the first three quarters of last year.
analysts suggest a significant catalyst for CRH’s stock over the next 12 months could be its acceptance into the S&P 500. Inclusion in this globally followed stock market index would compel fund managers to buy CRH stock. Though, the timing and likelihood of this nod from the index’s secretive committee remain uncertain.
What is Jim Mintern’s vision for the company’s future?
Interview with Jim Mintern,CEO of CRH: Navigating Growth and Strategic Shifts
Archyde News Editor (ANE): Thank you for joining us today,Mr. Mintern. CRH has undergone meaningful conversion over the past decade, particularly under the leadership of your predecessor, Albert Manifold. As the new CEO, what is your vision for the company’s future?
Jim mintern (JM): Thank you for having me. CRH has indeed evolved dramatically, and I’m honored to lead the company into its next chapter. My vision is to build on the strong foundation we’ve established, focusing on strategic growth, operational efficiency, and maximizing shareholder value. We’ll continue to prioritize North America, where we’ve seen tremendous success, while also exploring opportunities in other markets where we can create value.
ANE: North america now accounts for about 75% of CRH’s earnings. What makes this market so critical to your strategy?
JM: North America has been a cornerstone of our growth since we entered the market in 1978. The region’s robust infrastructure spending, favorable economic conditions, and strong demand for construction materials have driven our success.With approximately $6.97 billion in EBITDA generated in 2024, it’s clear that North America is a key driver of our profitability. Our decision to relocate our primary stock listing to New York in 2023 underscores our commitment to this market.
ANE: There’s been speculation about CRH spinning off its non-North American operations. Is this something you’re considering?
JM: While we’re always evaluating ways to optimize our portfolio, spinning off our international operations isn’t a near-term priority.Our European, Australian, and Philippine businesses, valued at $13.3 billion, remain an vital part of our overall strategy. Europe,in particular,has significant potential for recovery and growth,especially as infrastructure spending rebounds. We’re committed to maintaining a balanced approach, leveraging our strengths in North America while continuing to invest in opportunities abroad.
ANE: CRH has a long history in Ireland, dating back to 1936. How do you balance the company’s legacy with its forward-looking strategy?
JM: Our Irish heritage is a source of pride and a key part of our identity. Though, as a global company, we must adapt to changing market dynamics. While we remain committed to our roots, our focus is on creating value for shareholders and positioning CRH for long-term success.This means making strategic decisions, such as relisting in New York, that align with our growth objectives.
ANE: analysts have noted that CRH’s disciplined acquisition strategy has been a key driver of growth.How do you plan to approach acquisitions moving forward?
JM: Acquisitions will continue to play a vital role in our strategy. Over the past decade, we’ve invested over $25 billion in acquisitions while divesting more than $14 billion in non-core assets. This disciplined approach has allowed us to focus on high-growth areas and streamline our operations. Moving forward, we’ll prioritize acquisitions that complement our existing portfolio, enhance our capabilities, and deliver strong returns.
ANE: what are your priorities as CRH looks ahead to 2025 and beyond?
JM: Our priorities are clear: drive operational excellence, capitalize on growth opportunities in North America, and continue to expand our international presence. We’ll also focus on innovation and sustainability, ensuring that CRH remains a leader in the construction materials industry. With a strong balance sheet, a talented team, and a clear strategy, I’m confident that CRH is well-positioned to navigate the challenges and opportunities of the global market.
ANE: Thank you, Mr. Mintern, for sharing your insights. We look forward to seeing how CRH continues to evolve under your leadership.
JM: Thank you. It’s an exciting time for CRH, and I’m grateful for the possibility to lead this unbelievable company into the future.
