Commercial Metals Company (NYSE: CMC) closed a $1.84 billion cash transaction on December 15 2025 to acquire Foley Products Company, LLC. The deal adds 18 precast concrete and pipe manufacturing facilities in nine U.S. states, bringing CMC’s total precast footprint to 35 sites nationwide and positioning the company as the third‑largest precast platform in the country.
The acquisition is a cornerstone of CMC’s transformation from a traditional steel producer to a higher‑margin, integrated construction solutions provider. By adding Foley’s product lines—drainage, water management, dry utility, and road construction—CMC gains immediate scale in the growing infrastructure and non‑residential construction markets. The combined platform is expected to generate annual run‑rate synergies of $25 million to $30 million in EBITDA by year three, and the transaction is projected to be accretive to earnings per share and free‑cash‑flow per share from the first year.
Analysts responded positively to the deal. Jefferies upgraded CMC to a Buy rating and raised its price target to $78, citing the valuation benefits of the expanded precast business. JPMorgan upgraded the stock to Overweight, highlighting tariff advantages and an improved steel‑price outlook. The upgrades reflect confidence that the precast expansion will lift margins and provide a more stable revenue base amid volatile steel pricing.
CMC’s recent financial performance underscores the strategic value of the acquisition. In fiscal 2025 Q1, the company reported a net loss of $175.7 million, largely due to a $265 million litigation charge, but adjusted earnings of $0.78 per share. In Q4 2024, CMC posted net earnings of $103.9 million on sales of $2 billion, with consolidated EBITDA of $227.1 million and a core EBITDA margin of 11.4%. The acquisition is expected to offset margin pressure in the legacy steel business and accelerate the company’s shift toward higher‑margin construction solutions.
Peter Matt, CMC’s President and CEO, said the Foley deal “creates immediate scale for our precast platform while adding a best‑in‑class business with industry‑leading margins.” He added that the combined precast platform will “unlock further upside from our pending acquisition of CP&P” and that the expansion will “transform CMC’s financial profile, bringing sustainably higher and more stable margins and cash flow.”
The transaction is financed through a combination of cash and senior notes, with CMC announcing a $2 billion senior notes offering in November 2025 to support the acquisition and future growth initiatives.
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