In a bold play to strengthen its presence in America’s booming infrastructure market, Commercial Metals Co. (CMC) announced plans to acquire Foley Products Co. for $1.84 billion in cash, a move that will immediately expand its footprint and earnings power.
Advised by Akin Gump Strauss Hauer & Feld LLP, CMC said Thursday the deal—pending regulatory approval and closing conditions—will instantly enhance its earnings per share and free cash flow once finalized.
Foley, based in Georgia, operates 18 facilities across nine states, specializing in precast concrete products critical for drainage, water management, and road construction projects nationwide.
“A Unique Opportunity to Build Scale,” Says CEO
Calling the move a strategic leap forward, CMC President and CEO Peter Matt described the acquisition as a “unique opportunity to create immediate scale” within the company’s growing precast division.
“Adding a best-in-class business with industry-leading margins to CMC’s portfolio not only strengthens our platform but also positions us to serve a wider customer base across vital infrastructure markets,” Matt said in the announcement.
The acquisition of Foley follows closely on the heels of CMC’s $675 million deal to acquire Concrete Pipe & Precast LLC (CP&P) from Eagle Corp. and ECPP LLC, announced just last month.
