A top player in concrete rebar production and fabrication, Dallas-based Commercial Metals Co. (CMC) has entered a definitive agreement to acquire Tensar International Corp., Alpharetta, Ga., from Castle Harlan Partners V L.P. in a $550 million transaction.
“This compelling acquisition advances CMC’s strategy to expand our leadership in construction reinforcement with value-added products that complement our existing offering,” says CMC Chairman Barbara Smith. “Tensar will create a powerful platform for incremental growth into complementary high-margin engineered products that target CMC’s largest market, construction, serving end-use markets and customer segments where we have strong and existing 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, including subgrade, foundation, and structures.
“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.”
CMC and Tensar are at the forefront of environmental sustainability, she adds, with Tensar’s subgrade reinforcement and soil stabilization products able to reduce construction project carbon footprints by up to 30 percent compared to conventional methods. Both businesses are well-positioned to benefit from long-term trends favoring infrastructure spending.
Tensar is a leading global provider of innovative subgrade soil reinforcement solutions through two major product lines: Namesake geogrids and Geopier foundation systems. The former are polymer-based products used for ground stabilization, soil reinforcement, and asphalt optimization in construction applications including roadways, public infrastructure, and industrial facilities. Tensar originated geogrid technology, which reduces aggregate consumption, thereby decreasing construction time, expense, and the project owner’s cost of lifetime maintenance. The company also has a large portfolio of proprietary products.