CRH finished buying Arcosa on Oct. 23, roughly a quarter sooner than it said it would. The building materials giant announced the close of the $8.5 billion aggregates deal four months after agreeing to it on June 22, when it had guided to a first-quarter 2027 finish.
CRH paid $150 a share in cash, a 25% premium to Arcosa’s 60-day volume-weighted average price as of June 18. The enterprise value works out to about 11.5 times Arcosa’s expected 2026 adjusted EBITDA, but only after counting the synergies CRH says it’ll find. J.P. Morgan and Morgan Stanley provided committed bridge financing, and CRH put pro forma net debt at 2.4 times EBITDA.
What CRH gets in Arcosa’s aggregates business
The core of the deal is rock. Arcosa’s construction products segment runs 109 quarries and yards, nine asphalt plants and 19 terminals, and it shipped about 35 million tons of aggregates in 2025, according to CRH’s June deal announcement. Those natural and recycled aggregates serve 13 of the country’s 50 largest metro areas across Texas, New Jersey, Arizona, Florida and Tennessee.
Combined, CRH says it now has more than 265 million tons a year of aggregates production. That makes 35 million tons a meaningful bolt-on rather than a transformation, but the locations matter more than the tonnage. Aggregates don’t travel far economically, so owning quarries next to big, growing metros in Texas, Arizona and Florida is the closest thing the business has to a moat.
CRH is counting on $175 million a year in run-rate cost savings by year three. It names operating improvements, procurement and the “integration benefits of self-supply” as sources. That last one is the phrase contractors should note. It means CRH’s own asphalt and ready-mix plants can buy stone from quarries the company now owns.
Utility structures ride along with the stone
Arcosa also brings an engineered structures segment that CRH calls a top-three maker of infrastructure products for the energy transmission market. CRH CEO Jim Mintern pitched the deal as more exposure to road, water, energy and data center demand.
That fits a pattern. Valmont’s utility structure sales rose 23% last quarter, and steel pole capacity is being added across the industry. A materials company buying into transmission poles is a bet that grid spending outlasts the current data center rush.
What contractors should watch in CRH’s pricing
CRH said it will update its full-year 2026 guidance to include Arcosa when it reports third-quarter results on Oct. 29. That call will show how much of the deal’s value CRH expects from price versus volume.
For contractors in Texas and the Sun Belt markets Arcosa served, the practical change is fewer independent stone suppliers to bid against each other. When a market’s asphalt producer also owns the nearest quarry, aggregate pricing on public paving jobs gets harder to negotiate.