Escalating highway building costs have led local authorities to drop some projects, while in other states the lowest bids have been well above the available budget.

Highway construction costs have climbed to the point that Pennsylvania may consider toll roads to pay for new roads or upkeep, the state's governor said last week. Other states are considering raising fuel tax to meet shortfalls.

The US government has earmarked over $223bn to fund highway construction and maintenance until 2011. CRH's US materials business is 65% exposed to highway activity and 15% to the residential sector.

Merrion Stockbrokers analyst John Mattimoe described CRH's acquisition as "very complementary" and said the firm can use it as a "platform for subsequent bolt-on developments".