Irving-based Commercial Metals Co. (NYSE: CMC) agreed to buy Concrete Pipe & Precast LLC from Eagle Corp. and ECPP LLC for $675 million in cash.

Founded in 1915 as a single scrap yard in Dallas, CMC has grown into a Fortune 500 company with hundreds of facilities and nearly 13,000 employees serving customers worldwide. Concrete Pipe & Precast (CP&P), based in Ashland, Virginia, supplies precast concrete solutions across the Mid-Atlantic and South Atlantic.

CMC President and CEO Peter Matt, who took the helm in 2023 amid a strategic brand refresh to spotlight the business beyond steel manufacturing, said the acquisition advances the company’s strategy of “delivering value-accretive growth by expanding CMC’s commercial portfolio in early-stage construction and increasing the breadth of our participation on the job site.”

“CP&P is a leader in a large and attractive industry with strong, stable margins and cash flows,” he said. With the transaction, CMC will “immediately establish a meaningful and highly scalable growth platform that enhances our ability to provide valuable solutions to our customers and positions CMC to better capitalize on the powerful long-term structural trends that we expect will drive construction activity for years to come.”

CMC said the deal broadens its portfolio of early-stage construction solutions by adding precast capabilities that bring the company onto job sites earlier in the life of a project, from site preparation through structural erection. The company said precast exposure aligns with long-term demand drivers already benefiting its construction-focused portfolio, including infrastructure investment, industrial reshoring, energy generation, and efforts to ease the U.S. housing shortage.

CMC added that precast can also help address labor scarcity and project timeline pressures, supporting greater adoption over time.

The acquisition establishes what CMC called a scalable platform in a fragmented industry with strong margin characteristics. The top 10 precast suppliers account for less than 25% of the domestic market, with only two national players and relatively few sizable regional producers, creating a runway for both organic and inorganic growth through regional footprints that gain scale locally.

CMC framed the move as an entry into a large and attractive category: the domestic precast concrete industry generates about $30 billion in annual revenue and is projected to grow faster than the broader concrete sector, the company said. EBITDA margins typically exceed 20%, supported by the engineered, value-added nature of precast products.

Financially, CMC said the transaction strengthens its core while adding a complementary earnings driver with higher, more stable margins. Precast operations are less capital intensive than CMC’s traditional steel business, which the company said can translate into stronger cash-flow conversion on the EBITDA generated.

About CP&P

CP&P offers a full line of standard and highly engineered precast and reinforced concrete pipe solutions for infrastructure, nonresidential, and residential markets. CMC said the company is positioned to benefit from structural demand tailwinds in its core regions, including data center construction, stormwater management, industrial reshoring, and infrastructure investment. According to CMC, CP&P has built a competitive position through scale in local geographies, a record of customer service, and distinctive design and engineering capabilities.

Formed in 2012 as a joint venture between Americast Inc. (a former Eagle Corp. subsidiary) and Hanson Pipe and Precast LLC, CP&P has been fully owned since 2022 by Eagle Corp. and ECPP LLC.

Quincy Preston contributed to this report.

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