CRH nears $8bn deal to acquire Arcosa in biggest-ever acquisition

CRH Plc is nearing its biggest-ever acquisition, a deal to buy Arcosa Inc. for more than $8 billion including debt, according to people familiar with the matter.

The Dublin-based building materials group is in advanced discussions to acquire the Dallas-headquartered company, which manufactures infrastructure products including utility structures, construction materials and transportation components. A final agreement could be reached in the coming weeks, though talks could still fall apart, the people said.

Arcosa, which was spun off from Trinity Industries in 2018, has a market value of roughly $5.5 billion. The deal value of more than $8 billion including debt would represent a substantial premium to its undisturbed share price. CRH, with a market capitalization of about $55 billion, has been expanding its US footprint through acquisitions, including the $3.8 billion purchase of Ash Grove Cement in 2021 and the $2.8 billion acquisition of building materials assets from Martin Marietta in 2023.

The transaction would mark the latest consolidation in the North American building materials sector, where demand is being driven by federal infrastructure spending and a boom in data center and energy-related construction. CRH generates more than 60 percent of its revenue from the Americas, making the region its largest market. The company said in its most recent annual report that it expects US infrastructure and non-residential construction spending to remain supportive through 2026.

The deal would surpass CRH's previous record acquisition — the $3.8 billion purchase of Ash Grove — and underscore the company's strategy of expanding in the US market, where it already operates more than 1,100 locations. Arcosa's businesses in utility structures, wind turbine towers and construction aggregates would complement CRH's existing product lines and give it greater exposure to the renewable energy and power grid sectors.

Regulatory approvals would likely be required, given the combined company's market position in certain regional aggregates markets. The companies may need to divest overlapping operations to secure antitrust clearance, the people said. CRH has a track record of successfully integrating large acquisitions and has maintained investment-grade credit ratings through its expansion.

For CRH, the deal comes at a time when US construction spending continues to rise, supported by the Infrastructure Investment and Jobs Act and growing demand for data centers to support artificial intelligence workloads. Arcosa's utility structures business, which makes steel and concrete poles for electricity transmission, stands to benefit from grid modernization efforts and the buildout of renewable energy projects.

This article is for informational purposes only and does not constitute investment advice.