Wind tower components near the Arcosa manufacturing facility in Newton, Iowa. (Scott Olson/Bloomberg)
key takeaways:
- CRH agreed on June 22 to acquire US-based Arcosa for $8.5 billion in cash, offering $150 a share in a record deal.
- The acquisition underlines CRH’s US expansion strategy, which values Arcosa at a premium and adds to the growing infrastructure and energy equipment business.
- The deal, backed by JPMorgan and Morgan Stanley, continues CRH’s history of acquisitions following its move to move its primary listing to New York.
CRH PLC agreed to acquire US construction services company Arcosa for $8.5 billion, a record deal for an Irish building materials provider.
CRH will pay $150 a share for Arcosa in an all-cash deal, the company said in a statement June 22. This is about a 10% premium to Arcosa’s closing price last week.
Dallas-based Arcosa, which provides infrastructure materials as well as energy equipment in the U.S., reported net income of $37.8 million for the quarter ended March 31, a 60% increase year-on-year.
Arcosa shares closed at $135.84 on June 18, giving the company a market value of $6.7 billion. June 19 was a holiday in America
Dublin-based CRH, which has a market capitalization of about $74 billion, moved its primary listing from London to New York two years ago, partly to make it easier to do deals in the US.
The company has a history of acquisitions. In 2015, it paid 6.5 billion euros ($7.4 billion) to buy the assets that Holcim AG and Lafarge SA had to sell ahead of their merger to create the world’s largest cement company.
In the Arcosa deal, JPMorgan Chase & Co. and Morgan Stanley advised CRH and are providing bridge financing. Arcosa acquired Evercore Inc. and Goldman Sachs Group Inc. Worked with.
CRH America is ranked No. 4 on the Transportation Topics list of top construction material carriers.
