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Acquisition · Building Materials · Infrastructure · M&A
CRH Plc agreed to acquire U.S. construction services company Arcosa for $8.5 billion in an all-cash deal, paying $150 per share, marking the Irish building materials provider's largest acquisition to date and a significant expansion of its U.S. footprint.
Dallas-based Arcosa provides infrastructure materials and energy equipment in the U.S., reporting a 60% year-over-year increase in net income to $37.8 million for the quarter ending March 31. The $150 per share offer represents a roughly 10% premium to Arcosa’s closing price of $135.84 on June 18, which gave the company a market value of $6.7 billion.
Dublin-based CRH, with a market capitalization of about $74 billion, moved its primary listing to New York two years ago specifically to facilitate U.S. deals. This acquisition continues CRH's strategy of growth through M&A, following its 2015 purchase of assets from Holcim AG and Lafarge SA for 6.5 billion euros ($7.4 billion).
JPMorgan Chase & Co. and Morgan Stanley advised CRH and are providing bridge financing, while Evercore Inc.
and Goldman Sachs Group Inc. advised Arcosa.