TEXTILES.ORG
Commercial Metals Company (CMC), parent company of Tensar, has entered into a definitive agreement to acquire Foley Products Company, the largest regional supplier of precast concrete solutions in the United States and leader within the Southeastern U.S., for a cash purchase price of $1.84 billion, subject to customary purchase price adjustments.
The purchase price represents a multiple of 10.3x Foley’s forecasted 2025 EBITDA. When anticipated cash tax benefits are included, the effective multiple is reduced to approximately 9.2x. The transaction is expected to be immediately accretive to earnings per share and free cash flow per share, and by year three annual run-rate synergies are expected in a range of $25 million to $30 million of EBITDA.
“The acquisition of Foley presents a unique opportunity to create immediate scale for our precast platform while adding a best-in-class business with industry-leading margins to CMC’s portfolio,” said Peter Matt, president and CEO. “We believe precast has significant value creation potential for CMC, and the addition of Foley will help unlock further upside from our pending acquisition of CP&P. As a result, we will be even better positioned to bring value to our customers through an expansion of CMC’s commercial portfolio into mission critical precast applications across a highly complementary footprint in the Mid-Atlantic and Southeast. Our new precast platform is also expected to transform CMC’s financial profile, bringing sustainably higher and more stable margins and cash flow, along with significant synergy opportunities as we apply best practices across the network.”