Capral Limited to acquire OneSteel Aluminium business
Capral Limited (ASX: CAA) will pay $19 million for the OneSteel Aluminium business from OneSteel Trading Pty Limited, which is a subsidiary of Arrium Limited (ASX: ARI).
Importantly for Capral, the acquisition will deliver synergies as the companies have similar channels to market. Capral expects to realise synergies of between $2.5 and $5.0 million annually over the next three years.
OneSteel is a specialist aluminium distribution business selling both extrusion and rolled products, with markets including transport, marine, machinery and sheet metal fabrication.
The acquisition by Capral is strategically important for it to become an expanded full offer aluminium distribution business.
Capral said that the acquisition is anticipated to contribute positively in Q4 2013 which will result in a small improvement to company earnings for the year ended 31 December 2013.
The company added that earnings are still expected to be within previous guidance provided on 19 August 2013, assuming that the normal seasonal uplift occurs.
The acquisition price will be partly funded by a share placement of 78.5 million ordinary shares at $0.18 to raise $14.1 million.
Source: Proactive Investors