CRH to Acquire Arcosa in $8.5B Cash Deal at 25% Premium
ACA•CRH agreed to acquire Arcosa for $8.5 billion in cash at $150 per share, a 25% premium over the 60-day average, subject to shareholder and regulatory approvals with closing expected in early 2027. The deal adds Arcosa’s 35 million-ton aggregates and energy infrastructure operations, generating $175 million in annual synergies by year three.
1. Deal Overview
CRH agreed to acquire Arcosa in an all-cash transaction valued at $8.5 billion, paying $150 per share—a 25% premium over Arcosa’s 60-day average. The deal has unanimous board approval and is expected to close in early 2027 pending shareholder and regulatory sign-offs.
2. Arcosa Operations
Arcosa, based in Dallas, operates 109 aggregates quarries and yards, nine asphalt plants and 19 terminals, shipping approximately 35 million tons last year. Its Engineered Structures segment supplies infrastructure products for energy transmission, including grid modernization, electrification and data center construction.
3. Strategic Rationale and Synergies
The acquisition will bolster CRH’s position as North America’s largest aggregates producer with over 265 million annual tons. CRH forecasts annual cost synergies of $175 million within three years, along with immediate enhancements to earnings margins and cash flow.
4. Financing and Approvals
CRH plans to fund the transaction through a combination of cash on hand and debt financing, with J.P. Morgan and Morgan Stanley providing bridge loans. Approval from Arcosa shareholders and relevant regulators is required before the early-2027 close.
