CMC to acquire concrete supplier Foley Products for $1.84 billion (updated)

Commercial Metals

16/10/2025 12:17

Adds details and background throughout

Oct 16 (Reuters) - Commercial Metals Company CMC.N  said on Thursday it will acquire concrete supplier Foley Products Co for $1.84 billion in cash, as dealmaking accelerates across the U.S. building-products sector amid a push for scale and more local supply chains.

The Irving, Texas-based steelmaker said it expects the Foley purchase to be accretive to earnings and cash flow and to deliver annual run-rate synergies of $25 million to $30 million in EBITDA.

Dealmaking in the U.S. building-products industry has accelerated as companies seek scale and local supply chains to offset tariffs, with demand supported by new housing, repair and renovation, and non-residential construction.

   Last week, Roofing-material firm
TopBuild
BLD.N bought rival SPI for $1 billion in cash.

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

CMC also reported it beat Wall Street expectations for its fourth-quarter adjusted profit, with earnings of $1.37 per share versus the analysts' average expectation of $1.36 per share, according to data compiled by LSEG.

Shares of the company were up 1% in premarket trading.

Foley supplies precast concrete and concrete pipe used in site infrastructure such as utility connections, water supply and stormwater management.

The Newnan, Georgia-based company operates 18 facilities across nine states in the U.S. Southeast and also has a presence in the Central and Western regions.

Moelis & Company served as financial adviser and Akin Gump as legal counsel to CMC.

 (Reporting by Anshuman Tripathy in Bengaluru; Editing by Tasim Zahid and Sonia Cheema)

 ((Anshuman.Tripathy@thomsonreuters.com;))