CMA Makes Acquisition

CMA Corporation Ltd. announced the acquisition of Riverside Metal Industries, a scrap metal company located in New South Wales, Australia. The acquisition is subject to a number of conditions precedent, including the satisfactory completion of due diligence and final board approval.

CMA will pay about $5.5 million for the business.

Riverside Metal Industries operates a scrap metal yard and manufactures copper, aluminum and lead-based ingots for the foundry industry in Australia and overseas. The business has distributors in New Zealand, Victoria, Queensland, South Australia and Western Australia.

Paul Adams, CMA’s managing director, said the acquisition was consistent with the company’s growth strategy of pursuing targeted acquisitions that were earnings accretive and compatible with current activities. “Riverside Metal Industries represents an ideal opportunity for CMA to expand its operations in the Australian scrap metal industry, including the value-add services of ingot manufacturing.” he said.

“With an extensive network of distributors throughout Australia and New Zealand we believe Riverside Metal Industries will complement CMA’s existing business operations and provide real value in the long term.”