Paris, FRANCE – Fives has completed the acquisition of MAG Americas.
With this strategic acquisition, Fives becomes one of the global leaders in high-precision machine tools, used to manufacture large complex equipment and high performance composite processing machines. Fives achieves the global leadership position, in part, as a result of the acquisition of the three world-renowned MAG brands: Cincinnati, Giddings & Lewis, and Forest-Liné.
The acquisition of these brands is in line with Fives’ ambition and strategy to further strengthen its position in high-growth sectors - such as the aerospace, renewable energy, mining and special equipment sectors. These sectors experience increasing levels of demand, both in terms of the performance standards as well as the innovation capacity and ability.
Frederic Sanchez, President of the Executive Board of Fives, said:
"The technological expertise gained through the acquisition of MAG Americas is key to successfully support and achieve the innovation strategies and requirements of our major customers.
Acquiring MAG Americas fits well with the growth strategy of Fives. It allows us, on one hand, to acquire a leading position in the technology of composite materials, which is anticipated to have a bright future in many industrial sectors. Secondly, it enables us to achieve our global ambition to design and manufacture key production equipment and machines for leading industrial sectors such as aerospace, heavy equipment, and energy.
Strong brands such as Cincinnati, and all the related patents acquired from the MAG Group, are very complementary to our portfolio of businesses and technologies. In addition, the acquisition strengthens our global presence. It provides us with new opportunities in emerging markets and a greater footprint in the United States."
This acquisition strengthens Fives’ global position. In fact, 1,000 employees of MAG Americas, based in the United States, France, Canada, China, Korea and Russia will join the 6500 Fives’ employees in 30 countries. In 2012, MAG Americas achieved a turnover of approximately $400 million, 67% of which was achieved in the United States.
Since the beginning of the year, Fives also has strengthened its position in the high-value added steel sector.
First of all, in January 2012, it acquired Keods, a company specializing in high-level consultancy in metallurgy, focused on improving the quality of flat carbon steel products - something which is crucial for the development the product mix of global steel manufacturers, especially when it comes to serving the needs of the automotive industry.
Secondly, on the 2nd of July 2012, Fives signed a contract, which is expected to be completed in the very near future, to acquire OTO Mills. Upon completion of the acquisition, Fives will become the world-leading manufacturer of production equipment for steel tubes and profiles. OTO Mills is an Italian manufacturer of production lines for welded steel tubes and automation systems for the steel industry. OTO Mills employs 250 engineers and technicians. In 2013, it is expected to achieve a turnover of about €90 million Euros, half of which is through sales in North and South America. OTO Mills’ focus on technological innovation has enabled it to become a world leader in electric resistance welding (ERW) lines and to offer a wide range of production equipment of steel pipes of diameters ranging from 1/4" to 24" - used in many industrial applications, including in the oil and gas industry.
OTO Mills also has extensive expertise in automation, enabling higher levels of reliability and productivity within production processes. This automation expertise is a major asset, which, like the expertise provided by Keods, strengthens Fives’ position and commitment to the global steel industry.
These large-scale acquisitions were conducted with the full support of AXA Private Equity, the largest shareholder of Fives, which demonstrates its confidence in the overall strategy of Fives.
Fives is an industrial engineering group with a heritage of over 200 years of engineering excellence and expertise. Fives provides process equipment, production lines and turnkey plants for the biggest global players in the aluminum, steel, glass, automotive, logistics, cement and energy sector in both developing and developed countries. In all these sectors, Fives designs and manufactures equipment and innovative solutions, which better anticipate and meet the needs of its customers in terms of performance, quality, safety and respect for the environment. In 2013, Fives is forecasted to achieve a turnover of 2 billion Euros turnover and expected to have more than 7,500 employees in over thirty countries.