Tensar to be acquired by Commercial Metals Company (CMC)

Geogrid engineered solutions business Tensar Corporation, known for serving businesses working in civil construction, has announced it has entered into a definitive agreement to be acquired by Commercial Metals Company (CMC).

The change is part of CMC’s strategy to expand its leadership in construction solutions. 

Mike Lawrence, CEO of Tensar, a portfolio company of Castle Harlan, said: “I’m enthusiastic about the opportunity for Tensar to join with CMC for expanded reach in the civil infrastructure market.

“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 manufacturer of steel products, including rebar used in infrastructure construction reinforcement. They are innovators in the adoption of new manufacturing techniques and technology which aim to deliver more cost-effective, sustainable and resilient solutions to clients.

Barbara R. Smith, chairman of the board, president and chief executive officer of CMC said: “This compelling acquisition advances CMC’s strategy to expand our leadership in construction reinforcement, with value-added products that complement our existing offering.

“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.

“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.

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