Sources: Commercial Metals Co., Dallas; CP staff
A top player in concrete rebar production and fabrication, Commercial Metals Co. (CMC) has entered a definitive agreement to acquire Tensar International Corp. from Castle Harlan Partners V L.P. in a $550 million transaction. Alpharetta, Ga.-based Tensar is a leading subgrade reinforcement solutions provider through a) namesake, polymer geogrids used for ground stabilization and soil reinforcement; and, b) branded Geopier foundation systems, engineered to increase ground structures or working surfaces’ load-bearing characteristics.
“This compelling acquisition advances CMC’s strategy to expand our leadership in construction reinforcement with value-added products that complement our existing offering,” says Chairman Barbara Smith. “Our core strengths and end markets closely align. Customer satisfaction is at the center of our operating models, and both organizations are recognized in their markets for delivering value-added solutions in early-stage construction. Both companies produce significant value through innovations—including processes and products—and emphasize operational excellence to maximize financial performance.
“Tensar will create a powerful platform for incremental growth into complementary high-margin engineered products that target CMC’s largest core market, construction, serving customer segments where we have strong relationships. This transaction will strengthen CMC’s position as a global reinforcement solutions provider, capable of addressing multiple early phases of commercial and infrastructure construction.”
CMC and Tensar are at the forefront of environmental sustainability, she adds, citing the ability of Tensar subgrade reinforcement and soil stabilization products to reduce construction project carbon footprints by up to 30 percent compared to conventional methods. Both businesses are well-positioned to benefit from long-terms trends favoring infrastructure spending.