CRH to Buy Arcosa for $8.5 Billion, Targeting $175 Million Cost Synergies
ACA•CRH will acquire Arcosa for $8.5 billion in cash at $150 per share, representing a 25% premium to its 60-day VWAP, with a targeted closing in Q1 2027. The transaction values Arcosa at 11.5× its projected 2026 adjusted EBITDA and aims to deliver $175 million in annual cost synergies within three years.
1. Deal Terms
CRH has agreed to acquire Arcosa in an all-cash transaction valued at $8.5 billion, offering $150 per share—a 25% premium to its 60-day volume-weighted average price—subject to Arcosa shareholder approval, regulatory clearances and customary closing conditions, with a targeted close in Q1 2027.
2. Arcosa Operations
Arcosa’s network comprises 109 quarries, nine asphalt plants and 19 terminals, supplying approximately 35 million tonnes of aggregates annually and holding a top-three US market position in engineered structures for sectors including energy transmission.
3. Valuation and Financing
The deal implies an acquisition multiple of 11.5× projected 2026 adjusted EBITDA and is expected to generate $175 million in annual run-rate cost synergies within three years; CRH plans to fund the transaction with available cash and committed debt.
4. Strategic Rationale
The acquisition expands CRH’s footprint in fast-growing metropolitan regions such as Texas, Arizona, New Jersey, Florida and Tennessee, and strengthens its infrastructure materials portfolio driven by rising demand in energy and utility infrastructure solutions.
