Arcosa (ACA.US) is trading higher in pre-market! They have received an offer of $8.5 billion from CRH public limited company (CRH.US) for acquisition.

CRH public limited company (CRH.US) has signed an agreement to acquire 100% of the equity of American aggregate and key infrastructure products supplier Arcosa (ACA.US) through an all-cash transaction at $150 per share. CRH public limited company stated that it plans to use existing cash and committed debt financing to fund this acquisition. The boards of directors of both companies have unanimously approved the transaction, which is expected to be completed in the first quarter of 2027. However, the transaction is still subject to approval by Arcosa shareholders, relevant regulatory approvals, and other customary closing conditions. The enterprise value of Arcosa in this transaction is estimated to be around $8.5 billion, equivalent to 11.5 times its expected adjusted EBITDA for 2026, including anticipated annual cost synergies of approximately $175 million expected to be achieved by the third year post-completion. Based on the volume-weighted average price (VWAP) for the 60 trading days prior to June 18, the acquisition offer represents a premium of about 25% over Arcosa's stock price. Following this news, as of the time of writing, Arcosa's pre-market stock price has risen over 7% on Monday. Arcosa, headquartered in Dallas, Texas, is a supplier of infrastructure-related materials, products, and solutions. CRH public limited company stated that this acquisition is highly complementary to its business portfolio and will further advance its "interconnected product portfolio" strategy. The company expects that within the first 12 months post-completion, this acquisition will enhance earnings per share, profit margins, and cash flow.