CRH bets $8.5B on U.S. aggregates leader Arcosa
The building-materials giant called the deal accretive to earnings, margin, and cash flow within 12 months of closing.
The building-materials supplier CRH Public (CRH) announced an $8.5 billion acquisition of Arcosa, marking its largest deal in a decade and a decisive expansion into U.S. aggregates and engineered structures. The transaction, expected to close in the first quarter of 2027, values Arcosa at 11.5 times projected 2026 adjusted EBITDA and includes $175 million in estimated annual run-rate cost synergies by the third year.
CRH said the acquisition would be accretive to earnings, margin, and cash flow within the first 12 months after completion. The deal adds 35 million tons of annual aggregates production, lifting CRH’s combined U.S. capacity to over 265 million tons and reinforcing its position as the largest aggregates producer in the country. Arcosa’s Engineered Structures business, a top-three manufacturer in energy transmission, introduces new exposure to grid modernization, electrification, and data-center construction.
Pro forma net debt to adjusted EBITDA is projected at 2.4 times for 2026, preserving CRH’s investment-grade credit rating. Arcosa’s 2026 revenue is expected to reach $2.65 billion, with $565 million in adjusted EBITDA and a 21% margin. The acquisition breaks into two segments: Construction Products, contributing 60% of adjusted EBITDA, and Engineered Structures, contributing 40%.
CRH reiterated its 2030 financial targets, including 7% to 9% average annual revenue growth, a 22% to 24% adjusted EBITDA margin, and over 100% adjusted free cash flow conversion. The company said it maintains $40 billion in financial capacity through the end of the decade.
Capital allocation priorities have shifted toward growth, with 70% of investments earmarked for M&A and capital expenditures through 2030, up from 55% in prior years. CRH disclosed $8 billion in planned growth capex for 2024–2028, a 30% increase from earlier periods, aimed at expanding capacity in high-growth markets. The company has completed more than 320 acquisitions since 2015, with 88% classified as bolt-on deals.