Irving, Texas-based steelmaker Commercial Metals Company (CMC) announced Wednesday that it has entered into a definitive agreement to purchase Melbourne, Australia-based G.A.M. Steel Pty. Ltd (G.A.M.). G.A.M. is a distributor and processor of long steel products and plate, servicing the structural fabrication, rural and manufacturing segments in the state of Victoria. According to a company press release, 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."