CRH is in advanced discussions to acquire Arcosa, a U.S.-based construction engineering company, in a deal that would value Arcosa at more than $8 billion in enterprise value, according to a report made public Sunday.
Arcosa currently carries a market capitalization of $6.7 billion. The reported enterprise value implies a multiple on EBITDA of more than 13.7 times, based on the calculations cited in the report.
If CRH were to finance the transaction entirely through debt, the deal would push CRH's net debt to EBITDA ratio to approximately 2.4 times for 2026. The report notes that asset disposals could be used to reduce that leverage figure.
Arcosa's operations are concentrated mainly in the United States, with only limited activities in Canada and Mexico. The company's businesses are divided between construction materials and engineered structures.
- Construction materials: About 40% of Arcosa's group sales come from construction materials, of which more than 70% is aggregates.
- Engineered structures: The remaining portion of Arcosa's revenue is generated by its engineered structures division, which supplies the utility, wind, and transport sectors.
The engineered structures business creates areas of overlap with CRH's existing U.S. operations across multiple business segments, according to the report. The combination of product and sector exposure would extend CRH's footprint in U.S. construction materials and structural engineering markets while aligning with parts of its current U.S. portfolio.
The report's figures indicate a sizable valuation premium relative to Arcosa's market capitalization and highlight potential implications for CRH's leverage profile in a scenario where debt funds the transaction. The possibility of asset disposals is noted as a mechanism to mitigate increased leverage.
Information in the report underscores the geographic concentration of Arcosa's operations, the composition of its revenue by business line, and the valuation metrics implied by the proposed transaction. Further details about the structure, timing, or financing of any deal were not provided in the report.