Commercial Metals Sells Off the Last of Its Australian Distribution Business
06/17/2016 - Commercial Metals Co. has found a buyer for the last of its Australian steel distribution assets, the U.S.-based company has announced.
Commercial Metals didn’t identify the buyer or disclose a sale price for the G.A.M. Steel Service facility in Melbourne, Victoria. The deal is to close in July, the company said.
Commercial Metals acquired the business in June 2011, and at the time said the deal would spearhead an expansion of its Australian steel distribution business. But four years later, the company decided to withdraw.
“Despite focused efforts and substantial progress to stabilize and improve the results of the Australian distribution business, we determined that achieving acceptable financial returns would take additional time and investment,” it said in its 2015 annual report.
In July 2015, it sold six locations and later halted operations at three others. The Melbourne facility, in the suburb of Derrimut, had remained on the market until now.
Commercial Metals acquired the business in June 2011, and at the time said the deal would spearhead an expansion of its Australian steel distribution business. But four years later, the company decided to withdraw.
“Despite focused efforts and substantial progress to stabilize and improve the results of the Australian distribution business, we determined that achieving acceptable financial returns would take additional time and investment,” it said in its 2015 annual report.
In July 2015, it sold six locations and later halted operations at three others. The Melbourne facility, in the suburb of Derrimut, had remained on the market until now.
