CRH (+) : Considering the group’s largest ever acquisition: Arcosa?

研报英文原文证据摘录

CRH (+) : Considering the group’s largest ever acquisition: Arcosa?

EQUITIES

BUILDING MATERIALS

CRH OUTPERFORMPRICE* USD111.2  TARGET PRICE USD157 (UPSIDE 41%)

FLASH NOTE

Considering the group’s largest ever acquisition: Arcosa?

22 JUNE 2026 Securities Research Report Production time: 08:17* (London time)

Research Analyst & Publishing Entities

Paul Roger, CFA BNP Paribas London Branch (+44) 203 430 8415 paul.b.roger@uk.bnpparibas.com

What happened?

Media reports suggest CRH may be close to buying Dallas-based construction group Arcosa (Financial Times, 22 June).

Arcosa has a current market cap and EV of cUSD7bn and cUSD8bn, respectively, based on Bloomberg financials. This

would make it CRH’s largest ever deal. Neither company has yet commented.

BNPP View:

This would be a sensible deal strategically but heavily dependent on synergies to make the financials work, in our view.

We think the market may be cautious on the news initially pending further financial information, given Arcosa’s premium

to CRH.

Strategically, the deal would increase CRH’s aggregates exposure in high-growth Sunbelt states (Texas, South East)

and add competencies in infrastructure solutions via Arcosa’s Engineered Structures division (38% proforma Arcosa

2025 sales). It would bring a new data centre angle to the equity story and be broadly margin-neutral. The cultural fit

seems good – with Arcosa also growing strongly via M&A and focussed on operational excellence.

Financially, the deal could cost 17x 2026e EV/EBITDA pre-synergies assuming a 20% premium and based on Arcosa’s

mid-range 2026e EBITDA guidance (USD543m). CRH trades on 10.3x 2026e EV/EBITDA. We estimate it would be

c1.5% EPS dilutive if financed at a 4% cost of debt and increase 2026e net debt/EBITDA to 2.3x, limiting flexibility for