CRH acquired Dallas-based Arcosa for $8.5 billion in its largest-ever transaction. This deal fuels speculation that the company will spin off its European operations to become a pure-play US business.
North America generated 71% of the company's adjusted earnings in the prior year. CEO Jim Mintern aims to capitalize on US growth trends in transportation, water, and re-industrialization.
Company shares rose nearly 5% during the week of the announcement. The stock remains down for the year and trades at a discount to US rivals Vulcan Materials and Martin Marietta. Wall Street analysts and shareholders suggest a concentrated North American focus would improve valuation.