Allied Motion Technologies Signs Purchase Agreement to Acquire German Drive Technology Company
December 23 2015 - 4:15PM
Allied Motion Technologies Inc. (NASDAQ:AMOT), a global designer
and manufacturer of motion control products, announced today that
it has signed an agreement to acquire 100% of the stock of Heidrive
GmbH (http://www.heidrive-motion.net/en/startpage.html) for €20
million (approximately US$22 million). The transaction is
expected to close early in the first quarter of 2016. The
purchase price will be partially funded with existing cash plus
borrowings under the Company’s revolving credit facility, which
Allied and its banks have agreed to amend to increase borrowing
capacity to US$30 million from US$15 million.
Founded in 1938 and headquartered in Kelheim, Germany, Heidrive
has extensive expertise in designing and manufacturing customized
innovative synchronous motion systems for highly demanding
applications. Products include a variety of motors, gears and
electronic controls. Motors range from servo and brushless DC
motors, to AC induction and shaded pole motors. Heidrive’s
gears are designed for heavy duty use and include planetary, flat,
helical and worm gears, and its electronic controls are suitable
for various types of engines, facilitating dynamic movement and
rapid positioning. Given their customized nature, these
products are used in a broad range of applications from medical
technology and robotics to cargo aviation and building
technologies, as well as a variety of commercial applications.
Its products are manufactured at Heidrive’s facilities in
Kelheim, Germany and Mrakov, Czech Republic and supported by its
approximately 220 employees.
Heidrive expects 2015 revenue of approximately €29 million
(US$32 million), up about 8% from the prior year, and total assets
at December 31, 2015 are anticipated to be approximately €10
million (US$11 million).
“The addition of Heidrive furthers our growth strategy, enabling
us to expand our geographic reach and broaden our product and
technical capabilities,” commented Richard S. Warzala, Allied
Motion’s Chairman and Chief Executive Officer. “We believe
that these enhanced technical competencies will allow us to compete
more effectively in our existing markets as well as new markets
brought to us by Heidrive. We are enthusiastic about our
prospects and that the utilization of Allied Systematic Tools will
lead us to continuous improvements in quality, delivery, cost and
innovation as well as create significant value for our
stakeholders.”
About Allied Motion Technologies Inc.
Headquartered in Amherst, NY, 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.
The Company routinely posts news and other
important information on its website at
http://alliedmotion.com.
Safe Harbor Statement
Allied Motion makes forward-looking statements in this press
release that 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, prospects,
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; Heidrive’s business complementing and expanding
Allied Motion’s existing operations; growth prospects; other
potential benefits and synergies of the transaction; and the
availability of financing. Forward‑looking statements involve known
and unknown risks and uncertainties that may cause actual results
of the Company to differ materially from the forward‑looking
statements.
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 Heidrive operate; Allied Motion's
ability to successfully integrate Heidrive’s operations and
employees with Allied Motion's existing business; the ability to
realize anticipated growth, synergies and cost savings; and
Heidrive’s 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.
Company Contact:
Sue Chiarmonte
Allied Motion Technologies Inc.
Phone: 716-242-8634 x602
Email: sue.chiarmonte@alliedmotion.com
Investor Contact:
Deborah K. Pawlowski
Kei Advisors LLC
Phone: 716-843-3908
Email: dpawlowski@keiadvisors.com
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