SCRAP metal and contracting group CMA Corporation has announced the acquisition of New South Wales scrap metal processing and recycling business, Riverside Metal Industries. CMA will pay approximately $5.5 million for the business, which produced a net profit of about $1.1 million last financial year. The acquisition is subject to a number of conditions, including the satisfactory completion of due diligence and final board approval. It will be funded through the issue of 3.88 million fully paid ordinary shares issued at 77.4 cents, plus $2.5 million in cash. Based in Sydney, Riverside Metal Industries operates a successful scrap metal yard and manufactures copper, aluminium 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. CMA managing director Paul Adams said the acquisition was consistent with the company’s growth strategy.
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