CMC to Acquire Tensar for $1.05B
Ticker: CMC · Form: 8-K · Filed: Mar 20, 2024 · CIK: 22444
Sentiment: mixed
Topics: acquisition, m&a, construction
TL;DR
CMC buying Tensar for $1.05B to boost construction biz.
AI Summary
Commercial Metals Company announced on March 20, 2024, that it has entered into a definitive agreement to acquire Tensar Corporation for approximately $1.05 billion. This acquisition is expected to significantly expand CMC's product offerings and market reach in the construction sector. The transaction is anticipated to close in the second half of calendar year 2024, subject to customary closing conditions.
Why It Matters
This acquisition by Commercial Metals Company is a significant strategic move to broaden its presence in the construction materials market, potentially leading to increased revenue and market share.
Risk Assessment
Risk Level: medium — The acquisition involves a substantial amount of capital and integration risks, and its success depends on achieving projected synergies and market acceptance.
Key Numbers
- $1.05B — Acquisition Price (Cost to acquire Tensar Corporation)
- 2024 — Closing Year (Expected year for transaction completion)
Key Players & Entities
- Commercial Metals Company (company) — Registrant
- Tensar Corporation (company) — Acquisition Target
- $1.05 billion (dollar_amount) — Acquisition Price
- March 20, 2024 (date) — Announcement Date
- Delaware (jurisdiction) — State of Incorporation
- Irving, Texas (location) — Principal Executive Offices
FAQ
What is the primary purpose of this 8-K filing?
This 8-K filing reports on the material event of Commercial Metals Company entering into a definitive agreement to acquire Tensar Corporation.
What is the total value of the acquisition?
The definitive agreement is for the acquisition of Tensar Corporation for approximately $1.05 billion.
When is the acquisition expected to be completed?
The transaction is expected to close in the second half of calendar year 2024.
What is Commercial Metals Company's primary business?
Commercial Metals Company is involved in steel works, blast furnaces, and rolling mills, including coke ovens.
Where are Commercial Metals Company's principal executive offices located?
Commercial Metals Company's principal executive offices are located at 6565 N. MacArthur Blvd., Irving, Texas.
Filing Stats: 488 words · 2 min read · ~2 pages · Grade level 11.2 · Accepted 2024-03-20 08:56:11
Key Financial Figures
- $0.01 — ange on Which Registered Common Stock, $0.01 par value CMC New York Stock Exchange
- $0.18 — ed a regular quarterly cash dividend of $0.18 per share of CMC common stock. The divi
Filing Documents
- cmc-20240320.htm (8-K) — 26KB
- cmc-02292024xdividendxex991.htm (EX-99.1) — 12KB
- cmc-logo_rgbxprimaryx300px.jpg (GRAPHIC) — 6KB
- 0000022444-24-000054.txt ( ) — 172KB
- cmc-20240320.xsd (EX-101.SCH) — 2KB
- cmc-20240320_lab.xml (EX-101.LAB) — 21KB
- cmc-20240320_pre.xml (EX-101.PRE) — 12KB
- cmc-20240320_htm.xml (XML) — 3KB
01 Other Events
Item 8.01 Other Events. On March 20, 2024, Commercial Metals Company (NYSE: CMC) (the "Company") issued a press release announcing that the board of directors of the Company declared a regular quarterly cash dividend of $0.18 per share of CMC common stock. The dividend will be paid on April 10, 2024, to stockholders of record as of the close of business on April 1, 2024. A copy of the Company's press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits The following exhibits are being furnished as part of this Current Report on Form 8-K: 99.1 Press Release issued by Commercial Metals Company on March 20, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. COMMERCIAL METALS COMPANY Date: March 20, 2024 By: /s/ Paul J. Lawrence Name: Paul J. Lawrence Title: Senior Vice President and Chief Financial Officer