CRH to Acquire Rival Arcosa in $8.5 Billion Deal
CRH (CRH) said Monday it has agreed to acquire building materials rival Arcosa (ACA) in an all-cash transaction valued at about $8.5 billion, expanding its infrastructure products business and strengthening its position in North America.CRH will pay $150 per Arcosa share, representing a 25% premium to Arcosa's 60-day volume-weighted average share price as of June 18, the companies said.CRH's shares fell 0.9% in Monday trading, while Arcosa gained 7.4%.The acquisition reinforces CRH's position as the leading infrastructure player in North America and advances its strategy of building an aggregates-led, connected portfolio, Chief Executive Jim Mintern said in a statement.The transaction carries an enterprise value of about $8.5 billion. It implies an acquisition multiple of 11.5 times estimated 2026 adjusted EBITDA, including projected annual run-rate cost synergies of $175 million by the third year.The deal aligns with CRH's strategy of expanding its aggregates, cementitious and critical infrastructure offerings while positioning the company to benefit from growing demand for US energy and utility infrastructure, the company said.According to CRH, Arcosa adds 35 million tons of annual natural and recycled aggregates capacity across major markets in Texas, New Jersey, Arizona, Florida and Tennessee. The company added that the acquisition supports its 2030 financial targets and disciplined capital allocation strategy.Arcosa Chief Executive Antonio Carrillo said the transaction validates the company's efforts to expand in attractive markets, streamline its portfolio, reduce cyclicality and build a more resilient business focused on construction products and engineered structures.CRH intends to fund the transaction with available cash and committed debt financing. As of March 31, the company had cash and equivalents worth $3.24 billion.The companies expect the transaction to close in the first quarter of 2027, subject to shareholder and regulatory approvals. CRH said the transaction is expected to be accretive to earnings, margin and cash flow within the first 12 months after closing.Price: $110.39, Change: $-0.82, Percent Change: -0.74%
