Commercial Metals to acquire Concrete Pipe & Precast for $675M

Commercial Metals (CMC) announced it has entered into a definitive agreement to acquire Concrete Pipe & Precast, a supplier of precast concrete solutions to the U.S. Mid-Atlantic and South Atlantic regions, from Eagle Corporation and ECPP for a cash purchase price of $675M, subject to customary adjustments. The purchase price represents a multiple of 9.5x CP&P’s forecasted 2025 EBITDA. When anticipated cash tax benefits are included, the effective multiple is reduced to approximately 8.5x. The transaction is expected to be immediately accretive to earnings per share and free cash flow per share, and by year three annual run-rate synergies, primarily related to optimization initiatives, are expected in a range of $5Mto $10M.