Scrap metal recycler CMA Corporation Ltd will acquire Queensland-based metals trading group Mann Metals Pty Ltd through a cash and scrip deal, the company announced today.
The full text of a company announcement is pasted below
CMA Corporation Ltd is pleased to announce an agreement to acquire Queensland-based metals trading and recycling group Mann Metals Pty Ltd.
Mann Metals, which trades as Bayside Scrap Metal Industries, has an annual turnover of approximately $13 million and operates from 2 sites in the Brisbane metropolitan area. It also has metals recycling operations in PNG and has established metal trading relationships with scrap suppliers in a number of other offshore markets.
The acquisition is subject to satisfactory completion of due diligence and is scheduled for completion on 30 April 2007, with the consideration being a mix of CMA shares and cash.
The acquisition is expected to be earnings accretive in the first full financial year.
As part of the transaction, Mann Metals owner Paul Mann will remain with the business and become a CMA executive.
CMA Managing Director Peter Hatfull said the Company was excited by the Mann Metals acquisition. "Mann Metals has quickly built a substantial position in the fast-growing Queensland market where we anticipate continued strong growth for the foreseeable future on the back of the state's infrastructure, property and mining activity," he said.
"We also see great potential in Mann Metals' trading relationships with recyclers in a number of offshore markets, with good supply pipelines established and growing."
Mr Hatfull said CMA continued to work through due diligence and structuring arrangements on the Company's proposed acquisition of Victorian-based scrap metal recycling group Southern Rocycling, which was announced in February.
Further details of the acquisition and transaction timetable will be released to the market once due diligence, structuring and financing arrangements have been completed.
