The US-based supplier of aggregates and critical infrastructure products, Arcosa Inc (ACA.US), is set to be acquired in a deal valued at approximately $8.5 billion.
CRH PLC (CRH.US) has entered into a definitive agreement to purchase all outstanding shares of Arcosa for $150 per share in an all-cash transaction.
To finance the acquisition, CRH intends to utilize existing cash resources along with committed debt financing.
The boards of directors of both companies have unanimously approved the transaction, which is anticipated to close in the first quarter of 2027.
Completion remains subject to customary closing conditions, including approval from Arcosa shareholders and the receipt of necessary regulatory clearances.
The total enterprise value of roughly $8.5 billion represents a multiple of approximately 11.5 times Arcosa's projected 2026 adjusted EBITDA, a figure that incorporates estimated annual cost synergies of about $175 million expected to be realized by the third year post-closing.
Based on the 60-day volume-weighted average price (VWAP) prior to June 18, the offer price represents a premium of about 25% to Arcosa's unaffected share price.
In response to the news, shares of Arcosa were trading more than 7% higher in premarket activity on Monday.
Headquartered in Dallas, Texas, Arcosa provides a range of infrastructure-related materials, products, and solutions.
CRH stated that the acquisition is highly complementary to its existing business profile and will advance its strategy of building a "Connected Portfolio."
The company expects the transaction to be accretive to earnings per share, margins, and cash flow within the first 12 months following the deal's completion.
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