Foley Products Company, LLC – 2024 Financial Results and Acquisition by Commercial Metals Company

Key Highlights from the 2024 Financial Report

• Acquisition by Commercial Metals Company (CMC):
  Foley Products Company, LLC (“Foley”) announced on October 16, 2025, that it entered into a definitive agreement to be acquired by CMC. The transaction closed on December 25, 2025, for \$1.84 billion, subject to customary adjustments. As a result, Foley’s term loan was paid off and its line of credit was terminated.
• Outstanding Financial Performance in 2024:
  • Net sales reached \$401.1 million.
  • Net income was an impressive \$126.0 million.
  • Gross profit on sales stood at \$184.2 million, with a robust margin.
  • Operating income came in at \$153.5 million after total operating expenses of \$30.7 million.
  • Interest expense was significant at \$28.7 million, partially offset by \$1.1 million in other income.
  • Cash and cash equivalents at year-end totaled \$70.6 million.
• Strong Balance Sheet as of December 31, 2024:
  • Total assets: \$295.8 million
  • Current assets: \$154.0 million (including \$70.6 million in cash and \$52.0 million in receivables)
  • Non-current assets: \$141.7 million (notably \$112.97 million in property, plant, and equipment; \$17.5 million in intangible assets; \$7.1 million in goodwill)
  • Total liabilities: \$277.3 million (including \$251.8 million in long-term debt, net of current maturities)
  • Member’s equity: \$18.5 million (up from a deficit of \$39.8 million at the start of the year)
• Significant Cash Flows:
  • Net cash provided by operating activities: \$146.7 million
  • Net cash used in investing activities: \$9.0 million (primarily for property and equipment)
  • Net cash used in financing activities: \$89.3 million (including \$70.6 million in distributions paid, \$18.7 million loan repayment)
• Debt and Credit Facilities:
  • Term loan of \$263.85 million (quarterly principal payments with a variable interest rate of SOFR + 4.9%, effective rate 9.91% at year-end)
  • Interest rate cap on \$100 million of term debt (SOFR capped at 4.0%)
  • Undrawn \$35 million revolving credit facility as of year-end
• Intangible Assets and Strategic Acquisitions:
  • Acquisition of StormPrism™ intellectual property in 2023, valued at \$3.0 million upfront plus future payments through 2030 (NPV of future payments recorded as liabilities)
  • Intangible assets amortization for the year: \$2.13 million
• Share-Based Compensation and Member Structure:
  • Share-based compensation expense: \$2.88 million (Incentive units granted to management under a profits interest plan)
  • Distributions to members: \$70.6 million
  • Ownership structure: Solely owned by FPC HoldCo, LLC, comprising common, preferred, and incentive units
• Leases and Commitments:
  • Operating lease right-of-use assets: \$4.0 million; Financing lease right-of-use assets: \$3.6 million net
  • Weighted average remaining lease term: 15.2 years (operating); 27.6 years (financing)
  • No material litigation or contingent liabilities as of report date
• Subsequent Events:
  • Voluntary term loan paydown of \$20 million on January 31, 2025
  • Acquisition by CMC, with all outstanding debt paid off at closing

What Shareholders and Investors Need to Know

1. Major Acquisition by CMC: The most significant development is the acquisition of Foley Products by Commercial Metals Company for \$1.84 billion, which closed on December 25, 2025. This is a highly price-sensitive and material event as it provides a liquidity event for existing equity holders and will impact CMC’s future consolidated financials and strategy. The payoff of Foley’s term loan and the termination of its revolving credit facility further strengthen the post-acquisition balance sheet.

2. Robust Financial Health and Profitability: Foley’s 2024 performance demonstrates strong profitability, high cash generation, and prudent financial management. The company’s ability to generate significant net income, maintain strong gross margins, and accumulate cash reserves makes it an attractive acquisition target and underpins the valuation paid by CMC.

3. Strategic Asset Acquisitions and Innovation: The purchase of StormPrism™—a patented stormwater storage technology—positions Foley at the forefront of innovative infrastructure solutions, adding value to the acquiring company and its shareholders.

4. Share-Based Compensation and Employee Incentives: Material share-based compensation was recognized, reflecting efforts to retain and incentivize key management. The incentive structure aligns management interests with those of equity holders and acquirers.

5. No Material Contingent Liabilities: The company reported no material litigation or contingent liabilities, reducing risk for the acquirer and providing comfort to investors.

6. Clean Audit Opinion: Grant Thornton LLP issued an unqualified audit opinion, confirming the accuracy and integrity of the financial statements.

Conclusion

The acquisition of Foley Products Company, LLC by Commercial Metals Company at a \$1.84 billion valuation marks a significant event for both companies and their stakeholders. Investors should closely monitor CMC’s post-acquisition integration and performance, given Foley’s proven financial strength, innovative assets, and strong market position in concrete and precast products.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. The information is based on publicly available financial statements and may be subject to change or further clarification.

View COMMERCIAL METALS Co Historical chart here