Dublin-based CRH announced in mid-March an agreement to acquire Dallas-based Pavestone Group LP, propelling the Oldcastle Architectural Products Group
Dublin-based CRH announced in mid-March an agreement to acquire Dallas-based Pavestone Group LP, propelling the Oldcastle Architectural Products Group (APG) farther into a league of its own in building and landscape unit masonry shipments. The proposed $540 million transaction spans 18 concrete paver plants at 16 U.S. sites, 14 of which also have decorative stone bagging facilities. The purchase price includes assumption of debt and deferred consideration contingent on future profitability increases. Completion of the transaction is subject to regulatory approvals.
Founded in 1980, Pavestone staked claim to Texas, then Arizona, and positioned itself an early regional player to move concrete landscaping units through big box retail channels. It began a meteoric rise in the mid-1990s as demand through the big box channel soared, and staff continued development of a dealer and trained-contractor network. From 1993 through 1999, Pavestone went from two to 11 plants, and soon branched into bagged product to complement hardscape unit delivery. The company now employs upwards of 1,300 and derives about 70 percent of sales through retail home center channels, with remaining volume split between commercial projects and landscape or masonry dealers.
The Pavestone operations, which reported 2007 sales of $368 million, complement Oldcastle APG’s retail business, operating 30 paver and 11 bagging plants in 37 states. The acquisition offers the buyer a broader national footprint in concrete landscaping products (pavers, retaining wall products and patio products) and bagged stone with modern production facilities and an experienced workforce. Affirms CRH Chief Executive Liam O’Mahony, The proposed acquisition represents an opportunity to build on our success in developing APG into the leading North American supplier of multiple landscaping products, enabling profitable growth and an improved ability to service our core professional and DIY hardscape markets.