Commercial Metals Co. (CMC) announced on Thursday that it has entered into a definitive agreement to acquire Foley Products Co. for a cash purchase price of $1.84 billion, subject to customary purchase price adjustments.
Foley Products is the largest regional supplier of precast concrete solutions in the United States and a market leader within the Southeastern U.S. This acquisition unlocks incremental upside from the recently announced Concrete Pipe & Precast (CP&P) acquisition, offering a complementary footprint in high-growth markets along with a clear line of sight to meaningful synergy opportunities.
The transaction is expected to be immediately accretive to earnings per share and free cash flow per share. Following the proposed acquisitions of Foley and CP&P, CMC will operate 35 facilities across 14 states, establishing the company as the third-largest precast platform in the United States and a leader in the Mid-Atlantic and Southeast regions.
CMC has identified approximately $25 million to $30 million of operational annual run-rate synergies between Foley and CP&P by year three, with additional synergies expected to be realized in the future. Beyond cost savings, CMC anticipates delivering commercial synergies through cross-selling and by enhancing product capabilities across various geographies.
The transaction, which has been approved by the boards of directors of both CMC and Foley Products, is expected to close in a timely manner following customary regulatory review and is subject to customary closing conditions. Additionally, the company has secured a commitment for financing to complete the transaction.
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https://www.nasdaq.com/articles/commercial-metals-acquire-foley-products-184-bln-cash