Allied Motion Enhances Market and Technology Capabilities with Acquisition of TCI, LLC
December 06 2018 - 04:15PM
Business Wire
Allied Motion Technologies Inc. (Nasdaq: AMOT) (“Company”), a
designer and manufacturer that sells precision controlled motion
products and solutions to the global market, announced that it has
acquired TCI, LLC (“TCI”), a leading developer and manufacturer of
active (electronic) and passive (magnetic) products to resolve
power quality and harmonic issues associated with industrial power
conversion for $64.1 million. The purchase price was funded with
existing cash plus borrowings under the Company’s revolving credit
facility.
“TCI broadens and strengthens our position as a leading global
diversified solutions provider in the controlled motion market,”
commented Dick Warzala, Chairman and CEO. “Their adjacent
technologies and capabilities enable more efficient and longer life
solutions for motion devices in a wide variety of demanding
applications. We believe TCI’s technology and products will be a
valuable addition to our expanding suite of solution offerings to
further enhance the value creation opportunity that Allied brings
to its customers. Additionally, TCI is expected to improve Allied’s
overall margin profile and to be immediately accretive.”
Founded in 1961 and headquartered in Germantown, Wisconsin, TCI
designs and manufactures products that monitor and improve power
quality and extend motor life by reducing harmonic distortion
associated with variable frequency drives (VFDs) and other power
conversion equipment. With approximately 165 employees, TCI’s
manufacturing capabilities include magnetic and electronic product
assembly expertise to support a broad suite of power quality
solutions that are used in oil and gas, HVAC, water and wastewater,
and general industrial end markets primarily in the U.S. TCI
expects 2018 revenue of approximately $45 million and has achieved
above-market growth with a compound annual growth rate in the high
single digits over the last three years.
Mr. Warzala added, “There is tremendous opportunity for growth
potential with this acquisition as TCI has built longstanding
relationships with blue-chip machinery OEMs, system integrators,
consulting engineers and distributors. We believe their
well-established North America distributor network can aid in our
ongoing expansion of that channel and, equally important, we expect
to leverage the Allied international footprint to further TCI’s
global market penetration.”
Cleary Gull Inc. served as the exclusive financial advisor to
TCI, LLC.
About Allied Motion Technologies Inc.
Allied Motion (Nasdaq: AMOT) designs, manufactures and sells
precision and specialty controlled motion components and systems
used in a broad range of industries within our major served
markets, which include Vehicle, Medical, Aerospace & Defense,
and Industrial. The Company is headquartered in Amherst, NY, has
global operations and sells into markets across the United States,
Canada, South America, Europe and Asia.
Allied Motion is focused on controlled motion applications and
is known worldwide for its expertise in electro-magnetic,
mechanical and electronic motion technology. Its products include
brush and brushless DC motors, brushless servo and torque motors,
coreless DC motors, integrated brushless motor-drives, gear motors,
gearing, modular digital servo drives, motion controllers,
incremental and absolute optical encoders, and other associated
motion control-related products.
The Company’s growth strategy is focused on being the controlled
motion solutions leader in its selected target markets by
leveraging its “technology/know how” to develop integrated
precision solutions that utilize multiple Allied Motion
technologies to “change the game” and create higher value solutions
for its customers. The Company routinely posts news and other
important information on its website at
http://www.alliedmotion.com/.
Safe Harbor Statement
The statements in this news release that relate to future plans,
events or performance are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate, or imply future
results, performance, or achievements, and may contain the word
“believe,” “anticipate,” “expect,” “project,” “intend,” “will
continue,” “will likely result,” “should” or words or phrases of
similar meaning. Forward-looking statements involve known and
unknown risks and uncertainties that may cause actual results to
differ materially from the expected results described in the
forward-looking statements. The risks and uncertainties include
those associated with: the domestic and foreign general business
and economic conditions in the markets we serve, including
political and currency risks and adverse changes in local legal and
regulatory environments; variation in demand from customers;
continued market acceptance of the Company’s new product
introductions; operating margin risk due to competitive pricing and
operating efficiencies; supply chain risk; material and labor cost
increases; our ability to successfully integrate TCI into our
business model without substantial costs, delays, or problems; our
ability to leverage our sales channels to grow the market
penetration of TCI; risks associated with the oil and gas industry
including changes in prices, demand, exploration and production;
and other risks and uncertainties detailed from time to time in the
Company’s SEC filings. Actual results, events and performance may
differ materially. Readers are cautioned not to place undue
reliance on these forward-looking statements as a prediction of
future performance, results or events. Any forward-looking
statement speaks only as of the date on which it is made. New risks
and uncertainties arise over time, and it is not possible for us to
predict the occurrence of those matters or the manner in which they
may affect us. The Company has no obligation or intent to release
publicly any revisions to any forward-looking statements, whether
as a result of new information, future events, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20181206005955/en/
Company:Sue ChiarmonteAllied Motion Technologies
Inc.716-242-8634
x602sue.chiarmonte@alliedmotion.comorInvestors:Deborah K.
PawlowskiKei Advisors
LLC716-843-3908dpawlowski@keiadvisors.com
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