Irving-based Commercial Metals Co. (NYSE: CMC) has agreed to acquire Newnan, Georgia-based Foley Products Co., the largest regional supplier of precast concrete solutions in the nation and a leader within the Southeastern U.S., for a cash price of $1.84 billion.

The acquisition complements CMC’s recent $675 million acquisition of Ashland, Virginia-based Concrete Pipe & Precast, which was announced in September.

CMC President and CEO Peter Matt said the Foley acquisition “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.”

“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,” Matt added in a statement.

Matt said CMC will be “even better positioned” to bring value to its customers via an expansion of the company’s commercial portfolio into mission critical precast applications across a highly complementary footprint in the Mid-Atlantic and Southeast.

“Our new precast platform is also expected to transform CMC’s financial profile, bringing sustainably higher and more stable margins and cash flow, along with significant synergy opportunities as we apply best practices across the network,” Matt said.

CMC said that entry into the precast industry via the acquisitions of Foley and CP&P strengthens Commercial Metal’s strategic position by broadening its commercial portfolio in a way that creates additional value for customers, enhancing CMC’s exposure to powerful structural trends in construction, providing new capabilities to address construction industry challenges, and establishing a new growth platform with a significant future runway.

Creating the No. 3 precast platform in the U.S.

Following the proposed acquisitions of Foley and CP&P, CMC will operate 35 facilities across 14 states, creating the No. 3 precast platform in the U.S. and a leader in the Mid-Atlantic and Southeast.

CMC said it has identified roughly $25 million to $30 million of operational annual run-rate synergies between Foley and CP&P by year three, with more expected to be identified in the future.

Foley operates 18 facilities across nine states, and it offers one of the most comprehensive portfolios of solutions in the industry. Its products are critical in drainage, water management, dry utility, and road construction applications across residential infrastructure, non-residential, and infrastructure end markets.

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