Commercial Metals Co. (CMC) entered into a definitive agreement to acquire Tensar from Castle Harlan Partners for $550 million. While Tensar is best known for engineered solutions for subgrade reinforcement and soil stabilization used in road, infrastructure and commercial construction projects, the company’s polymeric-based geogrids have also been used for roof support applications in mining.
“This compelling acquisition advances CMC’s strategy to expand our leadership in construction reinforcement, with value-added products that complement our existing offering,” CMC Chairman, President and CEO Barbara R. Smith said. “Tensar will create a powerful platform for incremental growth into complementary high-margin engineered products that target CMC’s largest core market, construction, serving end-use markets and customer segments where we have strong and existing relationships. Once complete, 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.”
“Additionally, CMC and Tensar are at the forefront of environmental sustainability, with Tensar’s subgrade reinforcement and soil stabilization products able to reduce construction project carbon footprint by up to 30%, compared to conventional methods. We are also both well-positioned to benefit from long-terms trends favoring infrastructure spending,” Smith added.
In addition to geogrid technology, the company also has a large portfolio of proprietary products, including Geopier systems, which are ground improvement solutions that increase the load-bearing characteristics of ground structures and working surfaces, and can be applied in soil types and construction situations in which traditional support methods are impractical or would make a project infeasible.