SIFCO Industries, Inc. (NYSE MKT: SIF) announced today that it has
entered into a definitive agreement to acquire the Italian-based company
C*Blade from Riello Investment Partners. Closing will occur following
satisfaction of certain conditions and regulatory approvals, currently
anticipated by mid- 2015.
In an unrelated development, SIFCO also announced that Catherine M.
Kramer, Vice President and Chief Financial Officer, will leave the
Company, effective April 3, 2015, to return to the private equity
industry.
C*Blade Acquisition
The C*Blade
acquisition will deliver important strategic benefits to SIFCO’s target
markets of aerospace and energy, including broader reach into the steam
turbine market and an opportunity to sell C*Blade’s products in the U.S.
market.
C*Blade has been in business for more than 50 years and specializes in
the manufacture of steam turbine blades and gas compressor blades for
the energy market. C*Blade is a best-in-class manufacturer of critical
turbine components with strong machining capabilities and a long track
record of serving both OEM and aftermarket customers. Located in
Maniago, Italy, C*Blade has approximately 150 employees and annual
revenues of approximately US $30 million. The acquisition is expected to
be accretive to earnings.
“C*Blade enjoys a strong reputation for its design expertise and high
quality products,” said Michael S. Lipscomb, Chairman and Chief
Executive Officer. “We are delighted to have reached an agreement with
the C*Blade team and plan to leverage their strong capabilities and
competitive advantages to become an integral part of SIFCO’s growth
strategy.”
Chief Financial Officer
Ms.
Kramer has served in her current role since January 1, 2013. She joined
the Company in 2012 as director of financial planning and analysis after
spending four years at Greenstar Capital LLC, where she served as
managing director and vice president of strategic planning.
“While we are disappointed that Kate will be leaving us, we understand
and respect her decision to accept an opportunity in an area that has
been an important part in shaping her career success,” said Mr.
Lipscomb. “We thank her for her many contributions to SIFCO, and in
particular for leading us through our first year as an accelerated filer
in 2014, and wish her the very best.”
Mr. Lipscomb said a national search is underway for Ms. Kramer’s
successor. “We are seeking an individual whose skills and experience
support our strategic growth objectives, including global
opportunities,” he said.
Corporate Controller Thomas R. Kubera will serve as interim Chief
Financial Officer. Before joining SIFCO Industries in 2014, Mr. Kubera,
a CPA, spent nine years at Cliffs Natural Resources, most recently as
Controller - Global Operations Services.
Forward-Looking Language
Certain
statements contained in this press release are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, such as statements relating to financial results and
plans for future business development activities, and are thus
prospective. Such forward-looking statements are subject to risks,
uncertainties and other factors, which could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements. Potential risks and uncertainties include,
but are not limited to, economic conditions, competition and other
uncertainties detailed from time to time in the Company's Securities and
Exchange Commission filings.
The Company's Form 10-K for the year ended September 30, 2014 can be
accessed through its website: www.sifco.com,
or on the Securities and Exchange Commission's website: www.sec.gov.
SIFCO Industries, Inc. is engaged in the production of forgings and
machined components primarily for the aerospace and energy markets. The
processes and services include forging, heat-treating, and machining.
Copyright Business Wire 2015