The transaction is valued at US$550 million, according to a press release from CMC.
 
“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 Commercial Metals Company.
 
“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.”
 
Smith noted that CMC and Tensar are both 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%.
 
Tensar has two major product lines: Tensar^® geogrids and Geopier^® foundation systems. Geogrids are polymer-based products used for ground stabilization, soil reinforcement and asphalt optimization in construction applications. Geopier systems are ground improvement solutions that increase load-bearing characteristics of ground structures.
 
Read the full announcement here.