Building materials giant CRH has sold part of its US-based Apac operation for €162 million. The company said yesterday that it sold six of Apac's contracting and asphalt businesses in Georgia, the Carolinas, Texas and Virginia. In a statement, CRH said it was paid a total of $215 million (€162 million) for the businesses.

Between them, they generated sales of $520 million in the 12 months ended in June of this year. They earned $30 million before interest, tax and write-offs for depreciation and amortisation.

During the period, there was a charge of $18 million for depreciation and amortisation, leaving them with earnings before interest and tax of $12 million.

The Irish company bought Apac from its owner, US group Ashland, last August for €1.008 billion. CRH's American subsidiary, Oldcastle, did the deal.

Apac is a leading US asphalt, quarried material and highway construction company. Last year, it had sales of €2.3 billion and earnings before interest, tax and write-offs of €170 million.

The US group's products and the fact that it had a presence in regions where CRH's Americas materials division had yet to gain a foothold were the main reasons for the purchase. The firm is a big producer of asphalt, which will give CRH greater scope for taking advantage of a federal road building programme in the US.

When CRH announced the purchase four months ago, chief executive Liam O'Mahony made it clear that the Irish group intended selling off its low-margin businesses. At the time, he said that he wanted to switch its focus from contracting with building materials to building materials with contracting.

Company broker Davy noted yesterday that CRH had obtained 7.2 times earnings before interest, tax, depreciation and amortisation (Ebitda) on the disposals, well above the purchase multiple of 5.9 times Ebitda.

Mr O'Mahony said the sale of the six Apac businesses was consistent with that aim. "We are pleased with the progress achieved to date," he said. CRH also intends using Apac as a platform expanding into the areas of the south-western US where it previously did not have a presence.

To date this year, the Irish company has spent a record €1.9 billion on acquisitions. The Apac purchase, its biggest ever, considerably boosted its overall spend.

But it has also been active in Europe, buying businesses in Belgium, Austria and other countries, and in China, where it made a number of small purchases for the first time this year.

In a note released yesterday, Merrion Stockbrokers analyst, John Mattimoe, is predicting that CRH's 2006 sales will hit €18.3 billion and net profits will reach €1.1 billion. He is recommending the stock as a buy at €29 on the back of improved profit growth in Europe and the recovery of margins in the US.

CRH gained 50 cent to close at €29.50 in Dublin last night. Over one million shares changed hands.