Commercial Metals To Acquire Concrete Pipe & Precast For $675M In Cash Deal

Author: Benzinga Newsdesk | September 18, 2025 05:46am

Commercial Metals Company (NYSE:CMC) ("CMC") today announced it has entered into a definitive agreement to acquire Concrete Pipe & Precast, LLC ("CP&P"), a leading supplier of precast concrete solutions to the U.S. Mid-Atlantic and South Atlantic regions, from Eagle Corporation and ECPP, LLC for a cash purchase price of $675 million, subject to customary adjustments.  The purchase price represents a multiple of 9.5x CP&P's forecasted 2025 EBITDA.  When anticipated cash tax benefits are included, the effective multiple is reduced to approximately 8.5x.  The transaction is expected to be immediately accretive to earnings per share and free cash flow per share, and by year three annual run-rate synergies, primarily related to optimization initiatives, are expected in a range of $5 million to $10 million.

"The acquisition of CP&P is an exciting step forward as we advance our 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," said Peter Matt, President and Chief Executive Officer.  "CP&P is a leader in a large and attractive industry with strong, stable margins and cash flows. Through this transaction we 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."

Compelling Strategic and Financial Rationale

• Broadens CMC portfolio of early-stage construction solutions: Precast capabilities will expand CMC's commercial portfolio of value-added early-stage construction solutions with targeted customer groups and bring CMC onto the construction site earlier in the life of a project.  The addition of these solutions meaningfully enhances CMC's ability to participate in construction activity from site preparation to structural erection.
• Increases exposure to long-term structural trends: Precast concrete is expected to benefit from the same powerful structural demand trends as CMC's existing construction focused portfolio – these trends include infrastructure investment, industrial re-shoring, energy generation, and addressing the U.S. housing shortage.  In addition, precast capabilities enhance CMC's ability to address construction industry challenges such as labor scarcity and project timelines, and win greater adoption over time.
• Establishes a meaningful platform for growth: The acquisition establishes a highly scalable platform in a fragmented industry with strong margin characteristics.  The top 10 precast suppliers comprise less than 25% of the domestic market, with only two national players and a relatively small number of sizable regional producers.  These market dynamics provide CMC with a long-term runway for self-directed organic and inorganic growth by establishing regional operational footprints that benefit from scale in local markets.
• Entry into a large and attractive industry: The domestic precast concrete industry generates approximately $30 billion of revenue annually.  Market growth is projected to outpace the broader concrete sector, driven by positive adoption trends toward labor and time saving capabilities that precast solutions offer.  EBITDA margins generally exceed 20% and are reinforced by the value-added and engineered characteristics of the products.
• Enhances CMC's financial profile: The acquisition strengthens CMC's core business and adds a complementary earnings driver with higher, more stable margin characteristics.  The precast business is also less capital intensive than CMC's traditional steel operations, providing greater cash flow conversion on the EBITDA generated. 

Posted In: CMC