Commercial Metals Co. said Thursday that it agreed to acquire Foley Products Co. for $1.84 billion in cash. Based outside Atlanta, Foley provides precast concrete and pipe products primarily in the Southeast, operating 18 facilities in nine states. The company’s products are used in drainage, water management, dry utility, and road construction across residential, non-residential and infrastructure sectors.
In the Sept. 21 CDT Roundup, The Lawbook reported on Irving-based CMC’s acquisition of Concrete Pipe & Precast, which operates 17 facilities in seven states across the Mid-Atlantic and South, for $675 million cash.
“The acquisition of Foley presents a unique opportunity to create immediate scale for our precast platform,” President and CEO Peter Matt said in a news release. “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.”
Commercial Metals Co. expects the Foley acquisition to immediately add to earnings and free cash flow and produce annual run-rate synergies of $25 million to $30 million by the third year. Upon close of these transactions, CMC will operate 35 facilities in 14 states across the Mid-Atlantic and Southeast.
Jody Absher, who has been with CMC for 14 years in various in-house roles, is the company’s chief legal officer. Akin Gump provided outside legal counsel to Commercial Metals on the Foley deal, while Moelis & Co. acted as exclusive financial advisor.
The Akin team was led by Garrett DeVries and Eric Williams in Dallas, with assistance from Alison Chen in Houston, and Niki Dost, Alissa Selover and Hannah Bush in Dallas.