CRH's $8.5 Billion Acquisition of Arcosa Introduces Additional Cyclicality; Valuation Lowered

CRH is a global supplier of building materials, with the majority of its revenue earned in North America. Infrastructure is CRH's largest end market, representing 40% of group sales. As the largest roadbuilder in North America, CRH is well positioned to benefit from a 50% increase in funding for highway and road construction as part of the Infrastructure Investment and Jobs Act. CRH's investment thesis hinges on rising US construction activity driven by funding certainty for US infrastructure projects and reshoring.