Commercial Metals Company Acquires EDSCO Fasteners LLC

Rhea-AI Summary

Commercial Metals Company (NYSE: CMC) has acquired EDSCO Fasteners LLC, a leading provider of anchoring solutions for the electrical transmission market. EDSCO's custom engineered line of anchor cages, bolts, and fasteners are manufactured principally from rebar and used primarily to secure high voltage electrical transmission poles to concrete foundations. The acquisition is expected to extend CMC's capabilities to new and growing applications, particularly in the renewable energy sector.

Positive

• The acquisition of EDSCO Fasteners LLC positions CMC as a leader in construction reinforcement and extends its capabilities to new and growing applications, particularly in the renewable energy sector.
• CMC's Chairman and CEO, Barbara R. Smith, believes that EDSCO's innovative reinforcement solutions are well-positioned to benefit from the long-term transition to renewable energy, which will require extensive investment in electrical transmission capacity and wind power installations.

Negative

• None.

IRVING, Texas, July 13, 2023 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) ("CMC") today announced the purchase of EDSCO Fasteners LLC ("EDSCO"), a leading provider of anchoring solutions for the electrical transmission market, from MiddleGround Capital.  EDSCO's custom engineered line of anchor cages, bolts, and fasteners are manufactured principally from rebar and used primarily to secure high voltage electrical transmission poles to concrete foundations.  EDSCO serves the North American market from four manufacturing plants located in Texas, Utah, Tennessee, and North Carolina.  Since its founding in 1985, the company has grown to become the nation's largest provider of anchor cages for concrete reinforcement and has developed a strong reputation for customer service and reliability.

"This acquisition further advances CMC's leadership position in construction reinforcement and extends our capabilities to new and growing applications," said Barbara R. Smith, Chairman of the Board and Chief Executive Officer.  "EDSCO's innovative reinforcement solutions are well-positioned to benefit from the long-term transition to renewable energy, which will require extensive investment in electrical transmission capacity and wind power installations."

About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture, recycle and fabricate steel and metal products and provide related materials and services through a network of facilities that includes seven electric arc furnace ("EAF") mini mills, three EAF micro mills, one rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland. Through its Tensar division, CMC is a leading global provider of innovative ground and soil stabilization solutions selling into more than 80 national markets through its two major product lines: Tensar® geogrids and Geopier® foundation systems.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws regarding (i) the acquisition of EDSCO and its expected benefits, including with respect to CMC's competitive position, and (ii) trends in the energy industry. The statements in this release that are not historical statements, are forward-looking statements. These forward-looking statements can generally be identified by phrases such as we or our management "believes," "expects," "will," or other similar words or phrases, as well as by discussions of strategy, plans, or intentions.

Our forward-looking statements are based on management's expectations and beliefs as of the time this news release was prepared. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in our filings with the Securities and Exchange Commission, including, but not limited to, in Part I, Item 1A, "Risk Factors" of our annual report on Form 10-K for the fiscal year ended August 31, 2022 and Part II, Item 1A, "Risk Factors" of our subsequent quarterly reports on Form 10-Q, as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of our downstream contracts due to rising commodity pricing; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; the impact of the Russian invasion of Ukraine on the global economy, inflation, energy supplies and raw materials; increased attention to environmental, social and governance ("ESG") matters, including any targets or other ESG or environmental justice initiatives; operating and startup risks, as well as market risks associated with the commissioning of new projects could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investments; impacts from global public health crises, including the COVID-19 pandemic, on the economy, demand for our products, global supply chain and on our operations; compliance with and changes in existing and future laws, regulations and other legal requirements and judicial decisions that govern our business, including increased environmental regulations associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; evolving remediation technology, changing regulations, possible third-party contributions, the inherent uncertainties of the estimation process and other factors that may impact amounts accrued for environmental liabilities; potential limitations in our or our customers' abilities to access credit and non-compliance with their contractual obligations, including payment obligations; activity in repurchasing shares of our common stock under our share repurchase program; financial and non-financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate and integrate acquisitions and realize any or all of the anticipated synergies or other benefits of acquisitions; the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third party consents and approvals; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; the impact of goodwill or other indefinite lived intangible asset impairment charges; the impact of long-lived asset impairment charges; currency fluctuations; global factors, such as trade measures, military conflicts and political uncertainties, including changes to current trade regulations, such as Section 232 trade tariffs and quotas, tax legislation and other regulations which might adversely impact our business; availability and pricing of electricity, electrodes and natural gas for mill operations; our ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; our ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks; risk of injury or death to employees, customers or other visitors to our operations; and civil unrest, protests and riots.

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SOURCE Commercial Metals Company

FAQ

What company has acquired EDSCO Fasteners LLC?

Commercial Metals Company (NYSE: CMC)

What does EDSCO Fasteners LLC specialize in?

EDSCO specializes in providing anchoring solutions for the electrical transmission market, including anchor cages, bolts, and fasteners manufactured from rebar.

What are the potential benefits of the acquisition for CMC?

The acquisition is expected to extend CMC's capabilities to new and growing applications, particularly in the renewable energy sector.

Who commented on the acquisition from CMC?

Barbara R. Smith, Chairman of the Board and Chief Executive Officer of CMC, provided a statement regarding the acquisition.