May 26 2011
Commercial Metals Company (NYSE: CMC), headquartered in Irving, Texas, announced today that it has entered into a definitive agreement to purchase G.A.M. Steel Pty. Ltd. (G.A.M.) based in Melbourne, Australia. G.A.M. is a leading distributor and processor of steel long products and plate, servicing the structural fabrication, rural and manufacturing segments in the state of Victoria.
This long established business operates from large, modern facilities in Derrimut, a western suburb of Melbourne. G.A.M. has developed a market leading reputation for offering a wide range of long products as well as excellent customer service. Completion of the acquisition is contingent upon customary closing conditions.
CMC currently holds a significant position in steel marketing and distribution in Australia. In addition to being a leading importer, CMC has 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. The acquisition of G.A.M. will complement CMC's existing national long products distribution investments in Australia.
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."