June 22 (Reuters) - Ireland's CRH said on Monday it would acquire U.S.-based Arcosa in an all-cash deal valued at about $8.5 billion, strengthening the building materials group's position in North America.
CRH is offering $150 per share for Arcosa, representing a 10.4% premium to Arcosa's previous close. Shares of the Dallas, Texas-based company rose 7.5% to $146 in premarket trade.
CRH CEO Jim Mintern said the deal positions CRH to capitalize on rising demand for U.S. energy and utility infrastructure.
Arcosa owns quarries, yards and asphalt plants, and its Engineered Structures business is a major manufacturer in the U.S. energy transmission market.
The deal for Arcosa, which is expected to close in the first quarter of 2027, adds to a surge in dealmaking in the U.S. building-products industry as firms seek scale and localized supply chains to mitigate tariffs, with demand buoyed by new housing construction, repairs and renovations.
Earlier this year, QXO struck a $17 billion deal to acquire building products distributor and installer TopBuild. Last year, Commercial Metals Company acquired concrete supplier Foley Products for $1.84 billion.
CRH is a serial dealmaker and has spent $9.1 billion on nearly 80, mainly much smaller, acquisitions over the past two years.
Its largest previous deal was the €6.5 billion ($7.44 billion) purchase in 2015 of cement assets that European rivals Holcim and Lafarge had to sell ahead of their merger, a transaction that transformed the Dublin-based company into a much bigger player.
CRH said it expects run-rate cost synergies of $175 million by year three and for the deal to be accretive to earnings in the first 12 months post-completion.
J.P. Morgan and Morgan Stanley are acting as financial advisors to CRH, while Evercore and Goldman Sachs are serving as financial advisors to Arcosa.
($1 = 0.8732 euros)
(Reporting by Anshuman Tripathy in Bengaluru and Padriac Halpin in Dublin; Editing by Tasim Zahid)
