Lincoln Electric Signs Definitive Agreement to Acquire Fori Automation, Inc.
October 14 2022 - 7:30AM
Lincoln Electric Holdings, Inc. (Nasdaq: LECO) (the “Company”)
announced today that it has signed a definitive agreement to
acquire Fori Automation, Inc. (“Fori Automation”).
Fori Automation, a privately held automation
engineering firm founded in 1984, is a leading designer and
manufacturer of complex, multi-armed automated welding systems,
with an extensive range of automated assembly systems, automated
material handling solutions, automated large-scale, industrial
guidance vehicles (AGVs), and end of line testing systems. Fori
Automation primarily serves automotive and aerospace OEMs and is
headquartered in Shelby Township, Michigan, U.S.A. with additional
operations in six international facilities across Europe, Latin
America and Asia.
The acquisition will accelerate Lincoln’s Higher
Standard 2025 strategic goal of achieving $1 billion in automation
sales by 2025 with the addition of new and innovative automated
capabilities including large-scale assembly, automated material
handling solutions and end of line testing systems. These
complementary solutions will extend Lincoln’s market presence
within the attractive automotive sector, better position Lincoln
Electric to capitalize on accelerating investments in automotive EV
platforms, and offer cross-selling growth opportunities to
Lincoln’s industrial customers. The acquisition would also extend
Lincoln’s automation footprint in South Korea and India and expand
Lincoln’s existing presence in Europe, China and Latin America. The
Fori Automation acquisition is expected to increase Lincoln
Electric’s annual automation sales by approximately $225 million at
comparable EBIT margins to Lincoln Electric’s current automation
portfolio, and is expected to be accretive to earnings.
“This transaction represents an exciting growth
opportunity for both organizations by bringing together
best-in-class automation platforms and engineering expertise to
drive value for all of our stakeholders and accelerate our
automation growth and resources to advance our Higher Standard 2025
strategy,” said Christopher L. Mapes, Lincoln’s Chairman, President
and Chief Executive Officer. “Customers are increasingly investing
in automation to efficiently grow their businesses, and our
organizations are at the forefront helping automotive, aerospace,
and industrial customers achieve their operational goals.”
The definitive agreement provides for a cash
purchase price of $427 million, subject to a customary working
capital adjustment. The Company intends to fund the transaction
with cash on hand and arranged credit. The proposed acquisition is
subject to regulatory approval and other customary closing
conditions and is expected to close in the fourth quarter of
2022.
About Lincoln Electric
Lincoln Electric is the world leader in the
engineering, design, and manufacturing of advanced arc welding
solutions, automated joining, assembly and cutting systems, plasma
and oxy-fuel cutting equipment, and has a leading global position
in brazing and soldering alloys. Lincoln is recognized as the
Welding Expert™ for its leading materials science, software
development, automation engineering, and application expertise,
which advance customers’ fabrication capabilities to help them
build a better world. Headquartered in Cleveland, Ohio, Lincoln has
56 manufacturing locations in 19 countries and a worldwide network
of distributors and sales offices serving customers in over 160
countries. For more information about Lincoln Electric and its
products and services, visit the Company’s website at
https://www.lincolnelectric.com.
Forward-Looking Statements
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.
Forward-looking statements generally can be identified by the use
of words such as "may," "will," "expect," "intend," "estimate,"
"anticipate," "believe," "forecast," "guidance" or words of similar
meaning. Actual results may differ materially from such statements
due to a variety of factors that could adversely affect the
Company's operating results. These risks and uncertainties include
our ability to successfully complete the proposed Fori Automation
acquisition, including the receipt of required regulatory approvals
and the satisfaction or waiver of other closing conditions; our
ability to successfully integrate Fori Automation; our ability to
achieve the expected growth from the Fori Automation acquisition;
and the Fori Automation acquisition being accretive to earnings,
within the expected time frame or at all. For additional
discussion, see "Item 1A. Risk Factors" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2021.
Photos accompanying this announcement are available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/0ffa4b61-3bc1-44b6-9cb2-2fa526f7d7fchttps://www.globenewswire.com/NewsRoom/AttachmentNg/dfb28af8-f819-4ef2-bb85-903934ed0c04
Contact
Amanda Butler
Vice President, Investor Relations & Communications
Tel: 216.383.2534
Email: Amanda_Butler@lincolnelectric.com
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