Irish construction solutions provider CRH has agreed to acquire Arcosa, a US-based provider of infrastructure-related materials, in an all-cash transaction valued at approximately $8.5bn.
The deal, approved by the boards of directors of both companies, offers Arcosa shareholders $150 per share, representing a 25% premium to Arcosa’s 60-day trading volume weighted average price (VWAP) as of 18 June.
Completion of the transaction remains subject to Arcosa shareholder approval, regulatory clearances, and customary closing conditions, with a targeted closing date in the first quarter of 2027.
The proposed acquisition would give CRH full ownership of Arcosa, whose operations span 109 quarries and yards, nine asphalt plants and 19 terminals.
Arcosa’s core businesses include supplying aggregates, with expected annual shipments of around 35 million tonnes, and manufacturing infrastructure components for sectors such as energy transmission.
The company holds a top-three position in the US market for engineered structures, supported by demand trends in grid modernisation and electrification.
According to CRH, the transaction values Arcosa at an estimated acquisition multiple of 11.5 times its projected adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2026.
CRH anticipates annual run-rate cost synergies of $175m within three years following the integration.
Arcosa’s footprint in fast-growing metropolitan areas, including Texas, Arizona, New Jersey, Florida and Tennessee, is highlighted as a key reason for the acquisition.
CRH CEO Jim Mintern said: “As demand for US energy and utility infrastructure solutions accelerates, this transaction places CRH at the forefront of an immense growth opportunity and demonstrates our ongoing commitment to building market-leading positions through disciplined capital allocation.
“We have a tremendous amount of respect for Arcosa’s business and look forward to welcoming the Arcosa team into CRH.”
Arcosa president and CEO Antonio Carrillo said: “This transaction is a powerful validation of the work we’ve done in recent years to grow in attractive markets, simplify our portfolio, reduce cyclicality and build a more resilient business focused on Construction Products and Engineered Structures.”
CRH plans to fund the transaction through available cash and committed debt financing. J.P. Morgan and Morgan Stanley are acting as financial advisors to CRH, with Kirkland & Ellis as legal counsel.
Arcosa is being advised by Evercore and Goldman Sachs, with legal guidance from Gibson Dunn and Baker Botts.
CRH states that, following completion, the combined entity’s pro forma net debt to adjusted EBITDA ratio for 2026 is expected to be 2.4 times.
“CRH to acquire US-based Arcosa in $8.5bn all-cash deal” was originally created and published by World Construction Network, a GlobalData owned brand.
