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(Sharecast News) - Building materials provider CRH said on Monday that it has agreed to buy US construction company Arcosa for $8.5bn.
Under the terms of the deal - which is expected to generate estimated annual run-rate cost synergies of $175m by year three - CRH will pay $150 per share in cash.
Headquartered in Dallas, Texas, Arcosa is a provider of infrastructure-related materials, products and solutions. CRH said its construction products business is a leading aggregates platform in the US, with 109 quarries and yards, nine asphalt plants, 19 terminals and around 35 million tons (mt) of 2025 aggregates shipments.
The company's Engineered Structures business is a top three manufacturer of critical infrastructure products in the energy transmission market, supported by long-term megatrends in grid modernisation, electrification, and data centre construction.
CRH said the deal reinforces its position as the leader in US aggregates, as well as globally, and increases exposure to some of the fastest-growing Metropolitan Statistical Areas (MSAs) in the US.
Chief executive Jim Mintern said: "As demand for US energy and utility infrastructure solutions accelerates, this transaction places CRH at the forefront of an immense growth opportunity and demonstrates our ongoing commitment to building market-leading positions through disciplined capital allocation.
"We have a tremendous amount of respect for Arcosa's business and look forward to welcoming the Arcosa team into CRH."
At 1303 BST, Arcosa shares were up 7.3% at $145.77 in pre-market trade.
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