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Wed October 28 2020

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Interserve buys US formwork company

24 Nov 10 Interserve has reached a £22m deal to acquire the heavy forming and shoring assets of CMC Construction Services of the USA.

CMC is a division of CMC Steel Fabrications, Inc., which is a subsidiary of Commercial Metals Company. It has been one of the leading resellers of formwork and shoring solutions in the USA, primarily serving the civil engineering markets in Texas, Colorado and California, and has been a customer of Interserve's Equipment Services subsidiary RMD Kwikform since 2004.

Interserve said that the acquisition represented "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”.

The majority of the management and staff associated with this business activity have been re-employed by RMD Kwikform. The business will be based in Denver and will operate from distribution centres in Houston, Dallas, Denver and Los Angeles.

Revenues generated from the assets, people and facilities acquired were approximately $18m (£11m) million over the last 12 months.

Interserve is paying for the business from existing cash resources. At 30 June 2010 the Group had net debt of £53.1m and committed facilities in place of £250m, expiring in late 2013.

Chief executive Adrian Ringrose said: "This acquisition expands the Group's international footprint and 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."

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