Commercial Metals Company (NYSE: CMC) announced it will acquire Foley Products Company, a leading supplier of precast concrete solutions in the southeastern United States, for $1.84 billion in cash. The move marks CMC’s formal entry into the precast industry and follows its recently announced acquisition of Concrete Pipe & Precast (CP&P).
CMC said the acquisitions of Foley and CP&P will establish the company as the third largest precast platform in the U.S., operating 35 facilities across 14 states, and a market leader in the Mid-Atlantic and Southeast regions.
“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 Chief Executive Officer of Commercial Metals. “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.”
Foley Products is known for its industry-leading EBITDA margins and cash flow generation, supported by well-established best practices and a broad portfolio of precast solutions. The purchase price represents a 10.3x multiple of Foley’s forecasted 2025 EBITDA, or roughly 9.2x when factoring in expected cash tax benefits.
The transaction is expected to be immediately accretive to earnings per share and free cash flow, with $25 million to $30 million in annual run-rate synergies anticipated by the third year. Synergies will primarily stem from operational efficiencies, cost reductions, and cross-selling opportunities across complementary geographic markets.
Following the integration of Foley and CP&P, CMC expects its core EBITDA margin to increase by approximately 210 basis points, with about 32% of total pro forma segment adjusted EBITDA generated by its Emerging Businesses Group and precast platform — up from 15% in fiscal 2025. The company also expects strong free cash flow generation, targeting a reduction in net leverage from 2.7x to below 2.0x within 18 months.
CMC emphasized that the precast concrete market — estimated at $30 billion in annual U.S. revenue — provides a strong strategic fit, leveraging the company’s existing relationships in early-stage construction and expanding its reach into mission-critical infrastructure applications.
Precast components, such as concrete pipes and utility structures, are manufactured off-site in controlled environments, offering faster installation times, improved quality, and reduced labor needs compared to traditional pour-in-place methods.
