Tensar Corporation (“Tensar”), a global leader in geogrid engineered solutions for civil construction, and a portfolio company of Castle Harlan Inc.’s fund Castle Harlan Partners V, L.P., announced today it has entered into a definitive agreement to be acquired by Commercial Metals Company (NYSE: CMC) (“CMC”), as part of CMC’s strategy to expand its leadership in construction solutions.
“I’m enthusiastic about the opportunity for Tensar to join with CMC for expanded reach in the civil infrastructure market,” said Mike Lawrence, CEO of Tensar. “Both companies have a rich history of innovation, service and commitment to our customers’ success. Together we will be well-positioned to grow into key markets, leveraging forthcoming infrastructure spending as well as growing requirements for more sustainable solutions globally. We look forward to tapping CMC’s innovative, advanced manufacturing expertise to bring powerful product and service benefits to our customers and partners. This is an exciting change for employees and customers of both companies.”
CMC is a world leader in the manufacture of steel products, including rebar used in infrastructure construction reinforcement. They are innovators in the adoption of new manufacturing techniques and technology which deliver more cost-effective, sustainable and resilient solutions to clients.
“This compelling acquisition advances CMC’s strategy to expand our leadership in construction reinforcement, with value-added products that complement our existing offering,” said Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer of CMC. “Tensar will create a powerful platform for incremental growth into complementary engineered products that target CMC’s largest core market, construction, serving end-use markets and customer segments where we have strong and existing relationships.”
“Today’s announcement is another exciting step in CMC’s strategic growth plan that will further enhance our organization,” said Ms. Smith. “We look forward to welcoming Tensar’s 650 worldwide employees to the CMC family.”
The transaction has been approved by the boards of directors of both CMC and Tensar. The closing of the transaction is expected to occur in a timely manner following customary regulatory review and subject to customary closing conditions.
Morgan Stanley & Co. LLC is acting as financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel to Castle Harlan and Tensar in connection with the transaction.
Tensar is a global provider of engineered civil construction solutions, helping engineers, contractors and owners use geogrid and geopiers to achieve more cost-effective, reliable solutions for pavement construction, soil stabilization, earth reinforcement, ground improvement and other site development challenges. With manufacturing facilities in the U.S., U.K., China and Russia, Tensar can meet customers’ needs wherever they are.
CMC and its subsidiaries manufacture, recycle and fabricate steel and metal products, related materials and services through a network including seven electric arc furnace (“EAF”) mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the U.S. and Poland.