CMI Limited has acquired Flameproof Engineering, expanding its footprint in the oil and gas sector.
According to CMI Flameproof specialises in the design, manufacture, and assembly of fire explosive retardant products for control units used in hazardous industries such as oil, gas, and mining.
It acquired Flameproof for $350 000 and will absorb the business into its existing CMI Electrical division, retaining key management personnel.
In a company statement, CMI said "the acquisition reflects CMI's strategy to expand the current business operations by actively seeking acquisitions and growth opportunities that are compatible with the core businesses of the group".
"In particular, the acquisition strengthens CMI's product offering in the oil and gas sector, providing increased exposure to that sector during the downturn in coal.
"Whilst the acquisition is not financially material overall given the scale of the company's established operations, CMI believes that there is strong growth potential in Flameproof's product range in the medium term."