Acquisitions

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

4. Acquisitions

The Company strategically acquires companies in order to increase its footprint and offer products and services that enhance its existing offerings. These acquisitions are accounted for as business combinations using the acquisition method, whereby the purchase price is allocated to the assets acquired and liabilities assumed, based on their estimated fair values at the date of the acquisition with the remaining amount recorded in Goodwill.

On February 9, 2024, the Company acquired a portfolio of cement and readymixed concrete assets and operations in Texas, United States (the 'Hunter' acquisition) for a total consideration of $2,106 million. The Hunter acquisition is reported in the Americas Materials Solutions segment.

On July 1, 2024, the Company acquired approximately 57% of the issued share capital of Adbri (the 'Adbri' acquisition), a materials business in Australia, for a total consideration of $802 million. The Adbri acquisition is reported in the Europe Materials Solutions segment.

During the nine months ended September 30, 2024, the Company completed the acquisition of 28 companies. The total cash consideration for these acquisitions net of cash acquired, was $3,853 million. The estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition dates. The Company expects to finalize the valuation and complete the purchase price allocations as soon as practical but no later than one year from the acquisition dates.

The provisional amounts for assets acquired, liabilities assumed, and consideration related to the acquisitions at September 30, 2024 were:


in $ millions	Adbri	Hunter	Other acquisitions (i)	Total
Identifiable assets acquired and liabilities assumed
Cash and cash equivalents	15	–	8	23
Accounts receivable, net	158	–	80	238
Inventories	136	70	42	248
Other current assets	4	2	2	8
Property, plant and equipment, net	1,361	1,070	431	2,862
Equity method investments	366	–	–	366
Intangible assets, net	4	2	75	81
Operating lease right-of-use assets, net	18	12	28	58
Accounts payable	17	-	24	41
Accrued expenses	63	6	8	77
Operating lease liabilities	18	12	28	58
Long-term debt	519	–	9	528

Deferred income tax liabilities	208	–	21	229
Other liabilities	172	7	35	214
Total identifiable net assets at fair value	1,065	1,131	541	2,737
Goodwill	244	975	489	1,708
Noncontrolling interests	(507)	–	–	(507)
Total consideration	802	2,106	1,030	3,938

Consideration satisfied by:
Cash payments	802	2,106	968	3,876
Asset exchange	–	–	41	41
Deferred consideration (stated at net present cost)	–	–	10	10
Contingent consideration	–	–	11	11
Total consideration	802	2,106	1,030	3,938

Acquisitions of businesses, net of cash acquired
Cash consideration	802	2,106	968	3,876
Less: cash and cash equivalents acquired	(15)	–	(8)	(23)
Total outflow in the Condensed Consolidated Statements of Cash Flows	787	2,106	960	3,853

(i) Other acquisitions are aggregated on the basis of individual immateriality.

As a result of the acquisitions completed through September 30, 2024, the Company recognized $81 million of amortizable intangible assets and $1,708 million of goodwill. Goodwill represents the excess of the consideration paid over the fair value of net assets acquired and includes the expected benefit of cost savings and synergies within the Company’s segments and intangible assets that do not qualify for separate recognition. Of the goodwill recognized in respect of the acquisitions completed in the nine months ended September 30, 2024, $1,379 million is expected to be deductible for tax purposes. The amortizable intangible assets will be amortized against earnings over a weighted average of seven years.

Acquisition-related costs

Acquisition-related costs have been included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Income. These costs include legal and consulting expenses incurred in connection with completed acquisitions. The Company incurred the following acquisition-related costs:


	Three months ended		Nine months ended
	September 30		September 30
in $ millions	2024	2023	2024	2023

Adbri	22	–	22	–
Hunter	1	–	23	–
Other acquisitions	5	4	7	6
Total acquisition-related costs	28	4	52	6

The post-acquisition impact of acquisitions completed during the financial period on the Company’s results for the period ended September 30 was:


in $ millions	2024	2023
Revenue	733	114
Net loss attributable to CRH plc (i)	(3)	(7)

(i) Net loss amount excludes acquisition-related costs that arose during the nine months ended September 30, 2024, and September 30, 2023.

Pro forma results of operations for the current year acquisitions, as if they were combined as of January 1, 2023, have not been presented because they are not material to the Condensed Consolidated Financial Statements.