CRH: Initial Take on CRH Buying Arcosa: Neutral to Small Positive

研报英文原文证据摘录

CRH: Initial Take on CRH Buying Arcosa: Neutral to Small Positive

Equity Research

Company Update — June 22, 2026

Construction Materials

CRH Plc

Initial Take on CRH Buying Arcosa: Neutral to Small Positive Overweight

Price Target: $135.00

Our Call Ticker CRH

Upside/(Downside) to Target 20.6%

We're neutral to positive on CRH’s agreed acquisition of ACA, with benefit pending

achieving lofty $175M yr-three synergies. The deal appears easily digestible, keeps Price (06/22/2026) $111.92

leverage in check, and adds to a U.S. focus, possibly supported by divestitures. 52 Week Range $86.83 - 131.55

Market Cap (MM) $74,819

Deal strength rests on ambitious synergies. CRH on Monday agreed to acquire Arcosa Enterprise Value (MM) $90,128

(ACA, not covered) for $150/shr, a ~10% premium to ACA's June 18 close and total EV Average Daily Value (MM) $557

of $8.5B when adjusting for ACA's recent $450M Marine Products divestiture. The deal Dividend Yield 1.4%

equated to ~15x 2026E consensus EV/EBITDA, a ~4x premium to CRH’s prevailing ~11x,

or 11.5x with its assumed $175M of year-three synergies. The synergy target looked lofty $ (Dec) Q1 Q2 Q3 Q4 FY

relative to ACA's $614M of 2027E consensus EBITDA, in our view. EBITDA (MM)

2026E 586.0 A 2.63B E 3.01B E 2.17B E 8.39B E

Intriguing risk/reward The deal looks easily digestible for CRH to us. Fully debt-funded, 2027E 654.2 E 2.79B E 3.18B E 2.29B E 8.91B E

pro forma 2026E leverage rises to ~2.4x from 1.8x. With no synergies, we estimate ~1.5%

Source: Company Data, Wells Fargo Securities estimates, and Factset.

downside to our price target, while we estimate full realization of the $175M synergy NA = Not Available, NC = No Change, NE = No Estimate

target drives ~0-1% upside. Mgmt expected the deal to be accretive within 12 mos, and