Commercial Metals Co. (NYSE:CMC) said Thursday it will buy Concrete Pipe & Precast LLC for $675 million in cash, expanding into the U.S. precast concrete sector with operations across the Mid-Atlantic and South Atlantic regions.
The dealmakers value CP&P at about 9.5 times forecast 2025 EBITDA. That’s about 8.5 times, including tax benefits. CMC said the acquisition will add earnings and free cash flow in the first year, with $5 million to $10 million in projected annual synergies by year three.
Chief Executive Peter Matt said the purchase strengthens CMC's position in early-stage construction. Precast products, manufactured offsite and delivered ready to install, reduce labor requirements and shorten project schedules. He called CP&P "a leader in a large and attractive industry with strong, stable margins and cash flows."
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About The Deal
The U.S. precast concrete market generates about $30 billion annually and remains fragmented. The top 10 companies hold less than a quarter of the market. CMC said this structure creates room for growth through scale and acquisitions. Margins in the sector typically exceed 20%, supported by demand in infrastructure, housing, and industrial development.
CP&P operates 17 facilities across seven states, serving infrastructure, residential, and non-residential markets. Its high-growth areas also complement CMC's existing steel business while adding a less capital-intensive revenue stream.
The boards of all parties have approved the transaction, which will be financed with CMC's existing cash. Closing is expected after regulatory review, and CP&P's results will be reported in CMC's Emerging Businesses Group.
Commercial Metals’ balance sheet and liquidity position as of May 31, 2025, showed cash and cash equivalents totaling $893.0 million, with available liquidity of over $1.7 billion.
Investors tracking the sector also look to the SPDR S&P Metals & Mining ETF (NYSE:XME) and the iShares U.S. Infrastructure ETF (BATS:IFRA).
Price Action: CMC shares are trading higher by 0.79% at $58.94 last check on Thursday.
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