Construction and services giant launches bid to break American market
Support services giant Interserve is to try and break the US market with the acquisition of American subcontractor CMC Construction Services for $35m (£21.79m).
The firm, which is a subsidiary of Commercial Metals Company, turned over $18m (£11.21m) in the year, through its business of reselling the formwork in which concrete is cast and equipment and materials for shoring structures.
It works primarily in Texas, Colorado and California, and is a customer of Equipment Services.
Interserve said in a statement that the purchase was “an attractive opportunity to gain access to the largest construction market in the world via an existing client base and an established sales force, branch and distribution network.”
CMC has debt of £53m and loan facilities of £250m, due to expire in 2013.
Adrian Ringrose, chief executive of Interserve, said the acquisition expanded the Group’s international footprint. He said: “It provides an attractive growth opportunity for our equipment services division at a price that we believe represents excellent value for shareholders.”
“We are excited by the opportunity to leverage our expertise and experience within equipment services to generate significant growth in the US over the coming years.”