Allied Motion Technologies Inc. (NASDAQ: AMOT) announced today
that it has entered into a definitive agreement to acquire all of the
outstanding shares of Globe Motors, Inc. from Safran USA, Inc., on a
cash free, debt free basis, for approximately $90 million in cash. The
transaction is expected to close within 60 days and is subject to
certain customary conditions including regulatory approvals and
completion of the financing documentation.
Founded in 1940, Globe Motors employs more than 500 employees worldwide
and is headquartered in Dayton, Ohio with additional operations in
Dothan, Alabama, Reynosa, Mexico and Oporto, Portugal. Globe has a
well-established and strong industry reputation as a high quality
provider of customized and innovative motion solutions to meet the needs
of its customers in selected target market segments. For the year ended
December 31, 2012, Globe recorded revenues of approximately $106 million.
“Globe Motors has a solid financial track record that will be accretive
to our earnings and will also more than double the size of Allied Motion
in terms of revenues,” commented Dick Warzala, President and Chief
Executive Officer of Allied Motion. “Strategically, Globe fits very well
with our company, as it creates critical mass and expands our global
reach while providing the opportunity for us to leverage the combined
technology/know-how, sales and marketing channels, material sourcing and
production capabilities/footprint of both companies. While there is some
overlap in technology and in the customer base, the companies are very
complementary to each other and will provide additional market
diversification and cross-selling opportunities for the combined entity
in the future. We are enthusiastic about the prospects of our company
and confident that the utilization of Allied Systematic Tools will lead
us to continuous improvements in Quality, Delivery, Cost and Innovation
and will create significant value in the future for all stakeholders of
both Globe and Allied. Last but not least, we at Allied Motion are
excited to have the very professional and experienced management team
and employees of Globe join the Allied Team as we continue our journey
in providing Motion Solutions That Change the Game and
create significant value for our customers in our served market
segments.”
About Allied Motion Technologies Inc.
Headquartered in Amherst, New York, Allied Motion designs, manufactures
and sells motion control products into applications that serve many
industry sectors. Allied Motion is a leading supplier of precision and
specialty motion control components and systems to a broad spectrum of
customers throughout the world.
Cautionary Note Regarding Forward-Looking
Statements
Allied Motion makes forward-looking statements in this press release
which represent its expectations or beliefs about future events and
financial performance. Forward-looking statements are identifiable by
words such as “believe,” “anticipate,” “expect,” “intend,” “plan,”
“will,” “may” and other similar expressions. In addition, any statements
that refer to expectations, projections or other characterizations of
future events or circumstances are forward-looking statements. Forward
looking statements made in this press release, include, but are not
limited to, statements concerning: the expected timetable for
consummation of the transaction; Globe Motors’ business complementing
and expanding Allied Motion’s existing operations and international
presence; growth prospects; accretion to earnings and other potential
benefits and synergies of the transaction.
You are cautioned not to place undue reliance on these forward-looking
statements. These forward-looking statements are not guarantees of
future events and involve risks, uncertainties and other known and
unknown factors that may cause actual results and performance to be
materially different from any future results or performance expressed or
implied by such forward-looking statements, including, but not limited
to, the failure to consummate, or a delay in the consummation of, the
transaction; general economic conditions and conditions affecting the
industries in which Allied Motion and Globe Motors operate; the
uncertainty of obtaining regulatory approvals; Allied Motion's ability
to successfully integrate Globe Motors' operations and employees with
Allied Motion's existing business; the ability to realize anticipated
growth, synergies and cost savings; and Globe Motors' performance and
maintenance of important business relationships.
Allied Motion makes no commitment to revise or update any
forward-looking statements to reflect events or circumstances occurring
or existing after the date of any forward-looking statement.
Copyright Business Wire 2013