Newspaper article THE JOURNAL RECORD

CMI Acquires Concrete Equipment Manufacturer

Newspaper article THE JOURNAL RECORD

CMI Acquires Concrete Equipment Manufacturer

Article excerpt

CMI has bought Ross Co. of Brownwood, Texas, in a cash deal for an undisclosed amount.

Ross, a 47-year-old family-run business, manufactures concrete producing plants and concrete construction equipment.

The Ross plant will remain in Brownwood. Its employment force of 100 is expected to be doubled in the near future. "We'd like to add even more than that," said Jim Holland, CMI's vice president and chief financial officer. "It depends upon the amount of work that we can get for that plant. We think that we can fill it up, though." This is the second acquisition announced by CMI within recent months. The company also bought two product lines from Rexworks. Together, these acquisitions should contribute more than $40 million in additional annualized revenues to CMI, Chairman Bill Swisher said Thursday. For the first half of 1997, CMI revenues increased 17 percent to $87.8 million from $75.2 million the prior year. Net earnings totaled $3.6 million, or 17 cents a share, slightly off the $3.88 million, or 18 cents a share, scored in the first half of `96. The Oklahoma City manufacturer has long been noted for its concrete and asphalt paving equipment and asphalt plants, along with innovations in the concrete and paving industry, but has never been in the concrete plant business before. "We always have sold concrete paving equipment, but when a customer wanted to buy a concrete plant, we'd have to send them down the road," Holland said. So the Ross acquisition will mix well with CMI's inventory. "We've never sold concrete plants before, but we've wanted to," he said. "We just never had the time to sit down and work on it. "Acquiring the Ross Co. means we can now get into that market." Now that concrete batching plants will carry the CMI name, that means the company has the opportunity to expand its market. Until now, CMI has concentrated upon the paving industry -- streets, roads, highways, bridges and airport runways and taxiways - - but now has the opportunity to reach customers in the building construction business. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.