CMA Completes Bay Scrap Metals Deal

CMA Corp., based in Australia, has completed the acquisition of Bay Scrap Metals, a scrap metal recycling based in New Zealand. The acquisition adds to the CMA Group’s growing operations in the New Zealand market.

CMA paid a total of NZ$3.4 million (US$2.66 million) to acquire the firm.

Doug Rowe, CMA’s managing director, said the most recent acquisition would strengthen the company’s position in the New Zealand metal recycling market.

"The expansion of CMA’s New Zealand business provides the group with substantial additional infrastructure so that higher tonnages can be processed and further operational efficiencies can be gained," said Rowe. "This in turn leads to improved profitability."

"Securing a long term 20 year lease for a large new purpose built greenfield facility in Tauranga was pivotal to this acquisition and our future going forward. "It allows us to consolidate existing yards and provides us with a superb platform for expansion and growth for many years to come," Rowe continued.

The deal for Bay Scrap follows CMA’s recent acquisitions in New Zealand, including the purchase of another scrap recycler, Cableco Metal Industries, at the end of last year, as well as the purchase of two trucking firms and a meal processing facility in February 2008.