Allied Motion Acquires Original Equipment Steering Business from Maval Industries
January 19 2018 - 11:47AM
Business Wire
Allied Motion Technologies Inc. (NASDAQ: AMOT) (“Company”), a
designer and manufacturer that sells precision motion control
products and solutions to the global market, announced today that
it has purchased substantially all of the operating assets
associated with the original equipment (“OE”) steering business of
Maval Industries, LLC (“Maval”). Allied Motion focuses on designing
and selling motion components and systems to original equipment
manufacturers and end users through direct and distribution sales
channels. Consistent with Allied’s strategy to provide higher level
system solutions, the addition of the Maval OE product line enables
Allied to provide a fully integrated steering system solution to
its customers.
Founded in 1987 and located in Twinsburg, Ohio, Maval is a
leading provider of both new and remanufactured steering system
components for the automotive, off-road, performance and specialty
vehicle markets. Torque Capital Group acquired Maval in October
2016 and consistent with its strategy to focus on aftermarket and
re-man product manufacturing and sales, agreed to sell the OE
product line to Allied Motion.
“We believe this acquisition is an excellent strategic fit with
Allied Motion as it adds complementary technology, provides deeper
customer penetration and improves our ability to create more value
for our customers,” commented Dick Warzala, Chairman and CEO of
Allied Motion. “We are very familiar with Maval, having already
worked together on the development of new design technologies that
leverage the Maval mechanical products and the Allied electronics,
motor and gearing technologies to create additional customer value
by providing an integrated steering solution. The combination of
the capabilities of both companies, now under the Allied One-Team
umbrella, will provide our customers with a streamlined supply base
and single point of contact for all their steering needs. We
welcome the Maval employees that are joining the Allied Motion Team
and we look forward to an exciting future together.”
Given the costs associated with working through a shared
services agreement and completing the production
carve-out/separation of the businesses, the acquisition is expected
to be neutral to slightly accretive to earnings for Allied in 2018.
Once the carve-out is complete, the business will be located
entirely within its own dedicated facility in Twinsburg, OH.
About Allied Motion Technologies Inc.
Allied Motion (NASDAQ: AMOT) designs, manufactures and sells
precision and specialty motion control components and systems used
in a broad range of industries within our major served markets,
which include Vehicle, Medical, Aerospace & Defense, and
Industrial/Electronics. 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 motion control 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 becoming the motion
solution leader in its selected target markets by leveraging its
“technology/know how” to develop integrated precision motion
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; the introduction of new technologies and
the impact of competitive products; the ability to protect the
Company’s intellectual property; our ability to sustain, manage or
forecast its growth and product acceptance to accurately align
capacity with demand; the continued success of our customers and
the ability to realize the full amounts reflected in our order
backlog as revenue; the loss of significant customers or the
enforceability of the Company’s contracts in connection with a
merger, acquisition, disposition, bankruptcy, or otherwise; our
ability to meet the technical specifications of our customers; the
performance of subcontractors or suppliers and the continued
availability of parts and components; changes in government
regulations; the availability of financing and our access to
capital markets, borrowings, or financial transactions to hedge
certain risks; the Company's ability to realize the annual interest
expense savings from its debt refinancing; the ability to attract
and retain qualified personnel who can design new applications and
products for the motion industry; the ability to implement our
corporate strategies designed for growth and improvement in profits
including to identify and consummate favorable acquisitions to
support external growth and the development of new technologies;
the ability to successfully integrate an acquired business into our
business model without substantial costs, delays, or problems,
including the ability to carve out, relocate and separate the Maval
OE business; our ability to control costs, including the
establishment and operation of low cost region manufacturing and
component sourcing capabilities; 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 actual results. 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: http://www.businesswire.com/news/home/20180119005532/en/
Company:Allied Motion Technologies Inc.Sue Chiarmonte,
716-242-8634
x602sue.chiarmonte@alliedmotion.comorInvestors:Kei Advisors
LLCDeborah K. Pawlowski, 716-843-3908dpawlowski@keiadvisors.com
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