Why CRH Is Paying So Much More for Arcosa Than Arcosa Once Paid for a Similar Company

CRH agreed to buy Arcosa for $8.5 billion at a price roughly 40% steeper than Arcosa paid for Cherry Companies years earlier. Larger buyers get better deals when they snap up smaller ones. It also shows investors are confident the government will keep spending on roads and bridges—and that quality companies in that space are hard to find.