Lincoln Electric Completes Acquisition in China
July 29 2009 - 8:18AM
PR Newswire (US)
CLEVELAND, July 29 /PRNewswire-FirstCall/ -- Lincoln Electric
Holdings, Inc. (the "Company") (NASDAQ:LECO) today announced that
its Asian subsidiary, The Lincoln Electric Company (Asia Pacific)
Pte., Ltd. ("Lincoln Asia Pacific"), has acquired 100% control of
Jinzhou Jin Tai Welding and Metal Co., Ltd. ("Jin Tai"), a welding
wire business in Jinzhou, China. Lincoln Asia Pacific had owned 48%
of Jin Tai, and the remaining 52% was held by Taiwan-based Kuang
Tai Metal Industrial Co., Ltd. ("Kuang Tai") and other partners.
Jin Tai's annualized sales for the first half of 2009 were
approximately $130 million. "We are pleased to announce the
acquisition of Jin Tai, which starts a new phase in the development
of our business in China," said John M. Stropki, Chairman and Chief
Executive Officer. "Jin Tai will greatly expand our customer base,
bring experienced industry management talent into our Asian
organization and add significant cost-competitive MIG wire
manufacturing capacity. In addition, completing this acquisition
allows us to focus our resources on growing our position in China,
the largest welding market in the world in terms of volumes. "We
look forward to an ongoing cooperative relationship with Chou Tai
Long, Kuang Tai's Chairman, as Kuang Tai is an important global
supplier and a key customer for Lincoln's products." Lincoln Asia
Pacific acquired Jin Tai by exchanging its 35% ownership interest
in Kuang Tai, paying cash of approximately $39 million and assuming
net debt of approximately $10 million. The purchase price is
subject to final post-closing adjustments. 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 website 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. The factors include, but are not
limited to: the success of post-closing integration efforts; and
the degree to which actual operating performance of Jin Tai,
subsequent to closing, meets forecasted results. 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. DATASOURCE: Lincoln Electric Holdings, Inc.
CONTACT: Media: Roy L. Morrow, +1-216-383-4893, , or Investors:
Joseph P. Kelley, +1-216-383-8346, , both of Lincoln Electric
Holdings, Inc. Web Site: http://www.lincolnelectric.com/
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