Perth-based scrap metal group CMA Corporation Ltd today announced an expansion of its metal processing and contracting capability with business acquisitions in Queensland and Western Australia.
CMA has entered into agreements to acquire the Queensland-based T & T Metal & Asbestos Services (Queensland) business and the J&M Metals business in Port Hedland, Western Australia.
Managing Director Peter Hatfull said the acquisitions would add significantly to the capability of CMA's metals and contracting divisions, and moves the group closer to its strategic objective of building a national infrastructure.
Mr Hatfull said the acquisition of the J&M Metals business would provide CMA Metals with a window into the burgeoning Pilbara region of WA.
"In particular, this acquisition gives us better access to business flow from the iron ore sector, where we have had existing relationships in contracting and metals for many years," said Mr Hatfull.
"T & T Metal & Asbestos Services (Queensland) is a long-established contracting provider based in Brisbane but with a customer reach throughout Queensland," said Mr Hatfull.
"We were keen to build our business presence in the very robust Queensland market and we are pleased to have secured this profitable business on satisfactory terms. The acquisition also represents an addition to our Australasian metal processing network as these activities will be run and operated from the same premises.
"It also provides CMA with an increased platform from which to pursue contracts in asbestos removal and environmental remediation at a time when government and corporate spending in Queensland in these areas is high and still growing."
Mr Hatfull said both acquisitions would be earnings accretive and play important roles in CMA's long-term, sustainable growth.
The company reported a net profit of $1.7 million for 2005-06, in line with its revised guidance range of $1 million to $2 million, after making a number of strategic acquisitions in metal processing that significantly enhanced the Company's network and made important contributions to revenue and earnings.
