Austrim Buys $77m Textiles Company
Sydney Morning Herald
Monday September 30, 1996
Mr Alan Jackson has continued his ambitious expansion plans through his new company, Austrim, moving into Australia's struggling textile industry with the $77 million purchase of a fabric manager, CDA group.
The Melbourne-based CDA group - previously family-owned - specialises in making clothes fabrics as well material for car interiors.
The $77 million purchase price includes about $9 million worth of trade creditors and liabilities as well as $14 million for properties out of which CDA operates.
CDA employes about 410 staff and earnings before tax for the year to June 30 were about $11 million on turnover of about $77.5 million.
It was Austrim's second major purchase since Mr Jackson took the helm, saying Austrim could quickly become a top 100 company.
In May, Austrim bought AH Plant Group, a road plant hire and fleet management business, for $45 million.
Austrim made the CDA purchase with capital left over from a $80 million rights issue raised for the AH Plant purchase, as well as with bank borrowings.
Mr Jackson, Austrim's chairman and chief executive, said yesterday that the company's balance sheet could withstand another similar-sized purchase this financial year.
He said there was no dearth of potential acquisition targets on the market with Austrim particularly interested in the manufacturing sector.
"In my view there was a lot of smaller companies established in the 1970s or '80s that have grown to be very good companies with strong technology and strong profit records and where the owners are starting to get tired," he said.
© 1996 Sydney Morning Herald