The Gabelli Dividend Growth Fund, a series of Gabelli Equity Series Funds, Inc. on Arcosa, Inc.
Thesis
CRH agreed to acquire Arcosa for $150 per share in cash, turning the position into a merger-arbitrage opportunity. Gabelli viewed the remaining spread as an attractive uncorrelated, cash-like return rather than a conventional operating-company re-rating. The transaction was expected to close in early 2027.
“Arcosa now offers a good merger arbitrage return (i.e. uncorrelated cash-like return) into the deal close, expected in early 2027.”
Key risks
- The acquisition may fail to close or may be delayed