Interserve, the international services, maintenance and building group, has announced that its Equipment Services division has reached an agreement to acquire the heavy forming and shoring assets, including related distribution centres, of CMC Construction Services (CMC), a division of CMC Steel Fabrications, Inc., which is a subsidiary of Commercial Metals Company.

The acquisition enables Interserve to expand its geographical footprint into the world’s largest construction market.

A total cash consideration of approximately $35 million has been paid for the assets, which represents a significant discount to their replacement cost. The payment has been made from the Group’s existing cash resources. At 30 June 2010 the Group had net debt of £53.1 million and committed facilities in place of £250 million, expiring in late 2013. Hence the Group will retain a strong financial position following the acquisition.

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The acquisition is the next step in Interserve's strategy to expand its international growth with a fuller service offering, a major part of its platform for long-term growth. CMC 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 Equipment Services since 2004.

Adrian Ringrose, Chief Executive of Interserve, commented: "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."

(CD)