CLEVELAND, Dec. 28, 2010 /PRNewswire-FirstCall/ -- Lincoln
Electric Holdings, Inc. (Nasdaq: LECO) today announced that it has
signed a definitive agreement to acquire OOO Severstal-metiz:
welding consumables, a leading manufacturer of welding consumables
in Russia and a subsidiary of OAO
Severstal, one of the world's leading vertically integrated steel
and mining companies. The transaction will include acquiring
manufacturing operations and exclusive distribution rights of the
Severstal brand of welding consumables. Financial terms were not
disclosed.
"This acquisition will add to our manufacturing capacity in this
fast growing market and complement Mezhgosmetiz-Mtsensk OAO
("MGM"), our recent Russian acquisition," said John M. Stropki, Chairman and Chief Executive
Officer. "Severstal's extensive stick electrode offering, along
with solid wire and flux cored wire products, when combined with
solid wire products from MGM, will make Lincoln Electric a leading
consumables manufacturer in the CIS countries. The two acquisitions
complement our imported products offering and will expand our
market presence in the region."
Manufacturing production facilities are based in Orel,
Russia, with 283 employees. OOO
Severstal-metiz: welding consumables' 2010 estimated sales are
approximately $40 million USD.
"The sale of OOO Severstal-metiz: welding consumables will allow
us to concentrate fully on our core business (wire and wire
products) and continue to provide our clients with competitive
product of the highest quality," said Oleg
Veter, Chief Executive Officer of Severstal-metiz group of
companies.
The OOO Severstal-metiz: welding consumables transaction is
under review by Russian regulatory authorities and is expected to
close during the 2011 first half.
The Severstal-metiz group of companies incorporates all of OAO
Severstal's metalware assets, and is among the top European
producers of wire and wire products. Severstal-metiz's production
sites are located in Russia, the
Ukraine and Europe, and its primary customers are in the
construction, oil and gas, automotive, metallurgy and engineering
industries.
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 39 manufacturing locations, including operations and
joint ventures in 19 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.