Commercial Metals to Acquire Australian Long Products Distributor
05/27/2011 - Commercial Metals Co. has entered into a definitive agreement to purchase G.A.M. Steel Pty. Ltd. based in Melbourne, Australia. Completion of the acquisition is contingent upon customary closing conditions.
Commercial Metals Co. (CMC) has entered into a definitive agreement to purchase G.A.M. Steel Pty. Ltd. based in Melbourne, Australia. Completion of the acquisition is contingent upon customary closing conditions.
CMC says that the acquisition of G.A.M. will complement its existing national long products distribution investments in Australia. In addition to being a leading importer, CMC claims to have strong distribution relationships with domestic flat and long steel producers and a growing role in the supply of consumables to the foundry, aluminum, and steel segments.
CMC President and Chief Operating Officer Joe Alvarado said, "This acquisition is part of CMC's ongoing strategic expansion of its marketing and distribution business and will spearhead the expansion of its Australian steel distribution business in Victoria, Australia's strongest market for processed steel. The Australian economy is sound and the outlook for construction and, therefore, steel demand is positive. Combined these provide significant opportunities for growth driven by a surging resource sector."
At closing, G.A.M. will continue to operate as an independent steels distribution business, but will have opportunities for synergies with CMC’s group companies.
G.A.M. Steel Pty. Ltd. is a leading distributor and processor of a wide range of steel long products and plate, servicing the structural fabrication, rural and manufacturing segments in the state of Victoria. This business operates from facilities in Derrimut, a western suburb of Melbourne.
Headquartered in Irving, Tex., Commercial Metals Co. and subsidiaries manufacture, recycle, and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities, and marketing and distribution offices in the United States and in strategic international markets.
