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CMC purchases Foley Products at $1.84 Billion in a wave of building products deals

Commercial Metals Company announced on Thursday that it would acquire the concrete supplier Foley Products Co. for $1.84 Billion in cash. Dealmaking is accelerating across the U.S. construction products sector as a result of a drive for scale and local supply chains.

The Irving, Texas-based company said that it expected the Foley acquisition to have a positive impact on earnings and cash flows and deliver annual EBITDA synergies between $25 million and $30 million.

Dealmaking has increased in the U.S. construction products industry as companies look to scale and local supply chain to offset tariffs. Demand is supported by new housing and repair and renovation.

Last week, the roofing-materials firm

TopBuild

SPI bought rival SPI in exchange for $1 billion cash

Earlier this year, Home Depot's unit acquired specialty-building-products distributor GMS for about $4.3 billion in June, while QXO clinched an $11 billion deal for Beacon Roofing Supply in March.

CMC reported that it had beaten Wall Street's expectations for its fourth quarter adjusted profit. Earnings of $1.37 per common share compared to the analysts' expectation of $1.36, according data compiled by LSEG.

In premarket trading, shares of the company rose 1%.

Foley provides precast concrete and concrete pipes used in site infrastructure, such as utility connection, water supply and Stormwater Management.

Newnan-based Georgia company operates 18 locations in nine states of the U.S. Southeast. It also has a presence throughout the Central and Western Regions.

CMC was advised by Moelis & Company as its financial advisor and Akin, Gump as its legal counsel.

(source: Reuters)