CLEVELAND, Oct. 27 /PRNewswire-FirstCall/ -- Lincoln
Electric Holdings, Inc. (the "Company") (Nasdaq: LECO) today
announced that it has signed a definitive agreement to acquire
Mezhgosmetiz-Mtsensk OAO ("MGM"), a privately-held welding wire
manufacturer based in the Orel region of Russia. The acquisition will provide Lincoln
its first manufacturing operation in Russia as well as established distribution
channels to serve the growing Russian and Commonwealth of
Independent States (CIS) welding markets. Terms were not disclosed.
The acquisition has been approved by the Russian Federation regulatory agencies and is
expected to close October 29, 2010.
MGM has annual sales of approximately $30
million and employs over 200 people.
"Lincoln already has solid brand recognition and market presence
in Russia through imports of our
high technology welding products for the energy and infrastructure
segments," said John M. Stropki,
Chairman and Chief Executive Officer. "MGM, with its broad line of
premium quality solid wire and stick electrode product offerings,
combined with an extensive distribution network, will complement
our imported products offering and significantly expand our
commercial presence in the region.
"We have been impressed with the professionalism and skill of
the company's people, as well as its strong R&D capability, and
we believe MGM will be an excellent contributor to Lincoln's
strategic growth."
Lincoln Electric is the world leader in the design, development
and manufacture of arc welding products, robotic arc-welding
systems, plasma and oxyfuel cutting equipment and has a leading
global position in the brazing and soldering alloys market.
Headquartered in Cleveland, Ohio,
Lincoln has 37 manufacturing locations, including operations and
joint ventures in 18 countries and a worldwide network of
distributors and sales offices covering more than 160 countries.
For more information about Lincoln Electric, its products and
services, visit the Company's Web site at
http://www.lincolnelectric.com.
The Company's expectations and beliefs concerning the future
contained in this news release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements reflect management's current expectations
and involve a number of risks and uncertainties. Actual results may
differ materially from such statements due to a variety of factors
that could adversely affect the Company's operating results both
prior and subsequent to closing the above-mentioned transaction.
The factors include, but are not limited to: uncertainties arising
prior to closing that may impact consummation of the transaction;
regulatory clearances; and the success of post-closing integration
efforts.
More generally, the Company's operating results may also vary
from forward-looking statements due to the following factors: the
effectiveness of operating initiatives; general economic and market
conditions; currency exchange and interest rates; adverse outcome
of pending or potential litigation; possible acquisitions; market
risks and price fluctuations related to the purchase of commodities
and energy; global regulatory complexity; and the possible effects
of international terrorism and hostilities on the Company or its
customers, suppliers and the economy in general. For additional
discussion, see "Item 1A. Risk Factors" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2009.
SOURCE Lincoln Electric Holdings, Inc.
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