CRH to acquire Arcosa in $8.5B cash deal

CRH has signed an agreement to acquire 100% of Arcosa in an all-cash transaction that values the U.S. company at $150 per share. The offer implies a total enterprise value of approximately $8.5 billion, positioning the deal as a major transaction in the building materials and construction products space.

The agreed per-share consideration represents a 25% premium to Arcosa’s 60-day volume-weighted average price as of June 18, 2026. If the merger closes, each outstanding Arcosa common share will be converted into the right to receive $150 in cash.

The Boards of Directors of both CRH and Arcosa have unanimously approved the transaction. CRH has stated that Arcosa’s construction products operations will complement its existing portfolio, reinforcing its presence in the North American market.

At an enterprise value of about $8.5 billion, the agreement implies an acquisition multiple of roughly 11.5 times Arcosa’s estimated 2026 Adjusted EBITDA, including the impact of planned cost synergies. CRH estimates that, on a pro forma basis, Net Debt to Adjusted EBITDA for fiscal 2026 will be about 2.4 times following completion of the transaction.

CRH intends to fund the acquisition through a combination of available cash and committed debt financing. J.P. Morgan and Morgan Stanley (MS) are acting as financial advisors and are providing committed bridge financing, including a $5.75 billion bridge term loan facility to support the purchase price.

The company expects to achieve approximately $175 million of annual run-rate cost synergies by year three after closing. CRH also expects the transaction to be accretive to earnings within 12 months of completion.

The acquisition remains subject to approval by Arcosa stockholders, regulatory clearances, and other customary closing conditions. The parties expect the transaction to close in the first quarter of 2027, reflecting the time needed for regulatory review and shareholder processes.

The merger agreement includes an outside date of June 21, 2027. This outside date can be extended by up to six months to allow additional time to obtain any remaining regulatory approvals if necessary.

Upon completion, Arcosa will operate as a wholly owned subsidiary of CRH. Arcosa’s common stock will be delisted from public trading and deregistered, ending its status as an independent publicly listed company.