Building materials giant CRH is to spend a reported €100 million to €150 million on an Austrian DIY distributor.

The group yesterday confirmed reports that it was on the verge of taking over Quester, a family-owned business in Austria, which it agreed to buy this week.

The acquisition is subject to regulatory approval, but some reports claimed yesterday that this could come through as early as next week.

CRH was not prepared to reveal the purchase price. However, industry analysts yesterday pitched the value of the deal at €100 million to €150 million.

Quester had a turnover of €260 million. The company's owners have agreed to sell the business, but not its accompanying properties. Analyst John Mattimoe of Merrion Stockbrokers said yesterday that on the basis that Quester generates generates mid single digit margins typical of businesses in its sector in continental Europe, it would constitute a €100 million to €150 million transaction.

Quester distributes sanitary ware, flooring and insulation products to the home improvement and DIY markets. CRH already has a sanitary ware business in Switzerland, indicating that the latest deal could lead to efficiency gains for the group.

Mr Mattimoe said that the Quester deal would help ease investor fears about CRH's ability to maintain the high level of acquisition spending that has contributed to the company's overall growth.

He pointed out that if it goes through, that combined with the recent Stradal purchase, valued at €100 million to €130 million, this would mean that is spend in the second half will have already overtaken the modest €168 million it hit in the first six months of the year.

"This will ease investor concerns that arose in the first half over CRH's ability to sustain a robust level of ongoing acquisition spend," Mr Mattimoe said yesterday.