CMC's Concrete Power Play: Building an Infrastructure Giant

IRVING, TX – December 01, 2025 – Commercial Metals Company (CMC) has decisively moved beyond its steel-centric identity, completing a $675 million cash acquisition of Concrete Pipe & Precast, LLC (CP&P). This move, a cornerstone of a larger strategic pivot, positions the company to become a dominant force in the U.S. precast concrete market, a sector buoyed by powerful, long-term demand from data center construction, infrastructure renewal, and industrial re-shoring.

The acquisition of CP&P, a leading supplier across the Mid-Atlantic and South Atlantic, brings 17 strategically located facilities and 700 employees into the CMC fold. It is the first of two major transactions set to reshape the company. CMC anticipates closing its much larger $1.84 billion acquisition of Foley Products Company by the end of the calendar year. Once both deals are complete, CMC will operate one of the largest precast concrete platforms in the United States, transforming its role in the early stages of construction projects.

"I am thrilled to welcome CP&P's 700 employees to the CMC team," said Peter Matt, President and Chief Executive Officer. "This acquisition marks an important milestone in our Company's growth strategy, helping us bring more value to our customers and create more value for our shareholders."

A Strategic Pivot to Stability and Profit

This expansion into precast concrete represents a calculated diversification away from the historically cyclical and volatile steel market. While steel reinforcement remains a core part of its business, CMC is actively seeking complementary revenue streams that offer higher, more stable margins and robust cash flow. The precast concrete industry fits that profile perfectly.

Industry analysis reveals that the precast concrete sector boasts impressive and consistent EBITDA margins, often exceeding 20%. In contrast to rebar pricing, which can fluctuate dramatically, precast concrete pricing has demonstrated significantly more stability over the past two decades. The $675 million purchase price for CP&P was valued at 9.5 times the company's forecasted 2025 EBITDA, an effective multiple of 8.5 times when considering anticipated cash tax benefits. More importantly for investors, CMC expects the deal to be immediately accretive to its earnings per share.

Furthermore, the precast business is less capital-intensive than steel manufacturing. This lower capital requirement translates into a stronger rate of cash flow conversion, providing CMC with greater financial flexibility. The company projects that the CP&P acquisition alone will improve its through-the-cycle EBITDA margin by approximately 50 basis points. With the addition of both CP&P and Foley, CMC's Emerging Businesses Group is projected to contribute over 20% of the company's total pro forma EBITDA, a substantial increase from its current 15%. This shift fundamentally enhances CMC's financial profile, reducing earnings volatility and building a more resilient business model.

Forging a National Precast Powerhouse

The U.S. precast concrete market, valued at over $20 billion in 2024, is highly fragmented. The top ten suppliers account for less than a quarter of the domestic market, creating a significant opportunity for consolidation. CMC's back-to-back acquisitions of CP&P and Foley are a direct and aggressive move to seize this opportunity.

Upon completion of both deals, CMC will vault into the position of the third-largest precast concrete producer in the nation. CP&P already holds a number one or number two market position in its core Mid-Atlantic and South Atlantic territories. Foley Products Company, the largest regional supplier in the country, provides a complementary geographic footprint with 18 facilities concentrated in the high-growth Southeastern states.

This combined scale creates a formidable competitive advantage. By operating a vast network of facilities, CMC can offer a comprehensive portfolio of precast solutions—from reinforced concrete pipe and manholes to highly engineered custom products—across a huge swath of the country. This allows the company to engage with customers much earlier in the construction lifecycle, providing critical components for everything from site preparation and stormwater management to the final structural erection. The integration of these platforms is expected to yield significant synergies, with CMC targeting annual run-rate synergies of $5 to $10 million from the CP&P deal and an additional $25 to $30 million from the combined platform within three years, driven by operational optimizations and cross-selling opportunities.

Capitalizing on an Unprecedented Demand Boom

CMC's strategic timing could not be better. The company is positioning itself to directly capitalize on several powerful, secular demand tailwinds that are fueling a construction boom across its new core territories.

Chief among these is the explosive growth in data center construction. Driven by the proliferation of AI, cloud computing, and digital transformation, the U.S. data center construction market is projected to grow from around $14 billion in 2025 to over $21 billion by 2030. These massive projects require enormous amounts of precast concrete for structural components, utility vaults, and protective enclosures, creating a sustained source of high-value demand.

Simultaneously, massive federal infrastructure investments are flowing into projects to modernize roads, bridges, airports, and water systems. Precast concrete is a critical material for these projects, prized for its durability, quality control, and the speed of installation it enables. CP&P and Foley are both major suppliers to this sector, with product lines focused on drainage, water management, and transportation infrastructure.

Finally, the ongoing trend of industrial re-shoring—bringing manufacturing back to the United States—is spurring the construction of new factories and supply chain facilities, particularly in the Southeast. This, combined with a rising demand for affordable housing and solutions for complex stormwater management, creates a multi-faceted demand environment that CMC's newly expanded precast division is uniquely equipped to serve. By offering labor-saving and time-saving precast solutions, the company also directly addresses persistent challenges like labor scarcity and tight project timelines, adding further value for its customers.

The acquisition of CP&P is far more than a simple transaction; it is the first major step in the strategic reinvention of Commercial Metals Company. By building a leadership position in the stable and growing precast concrete market, CMC is not only diversifying its revenue but also embedding itself more deeply into the foundational stages of America's most critical construction projects. As demand for data centers, renewed infrastructure, and domestic manufacturing continues to surge, CMC has built a powerful new engine for growth.