JOHNSON CITY, Tenn.,
Aug. 17, 2015 /PRNewswire/
-- NN, Inc., (NASDAQ: NNBR) a diversified industrial company,
today announced that it has entered into a definitive agreement to
acquire Precision Engineered Products Holdings, Inc. (P.E.P.) for
$615 million in cash. The transaction
is expected to be immediately accretive to earnings. The
Company anticipates that the transaction will close by the end of
October, 2015, subject to customary closing conditions and
regulatory approval. NN was advised on the transaction by
KeyBanc Capital Markets, Inc.
P.E.P. is a global manufacturer of highly engineered precision
customized solutions serving the medical, electrical,
transportation and aerospace end markets. P.E.P. has built a highly
respected brand on which customers rely to solve their most
difficult problems across diversified end markets. P.E.P.'s net
sales for the last twelve months ending June
30, 2015, including acquisitions, were $245.3 million, with approximately $180.0 million coming from the medical and
electrical businesses.
Richard Holder, President and CEO
commented, "The addition of the P.E.P. business into our portfolio
is a transformative step in creating a diversified industrial
company that serves a variety of end markets and delivers
consistent results through the economic cycle. P.E.P. strengthens
our technical capabilities and provides us with additional dynamic
platforms to support outgrowth of our end markets. P.E.P.'s focus
on the medical, electrical, and aerospace end markets and delivery
of world class precision and technology to their customers aligns
perfectly with our strategic plan. Utilizing the NN Operating
System, P.E.P. will have the tools and resources to continue to
develop new products and drive operational efficiency in the years
to come. We look forward to welcoming the P.E.P. team into the
NN family."
NN expects to finance the transaction primarily with available
cash and the issuance of debt from new fully committed credit
facilities.
Conference Call & Supplemental Deck
A supplemental presentation on this acquisition has been posted
to NN's website. The Company will host a conference call to discuss
the transaction on August 18 at
10:00 a.m. ET. Access the call by
dialing 888.500.6950 in the U.S., or 719.325.2329 internationally,
conference ID: 5318922. A replay of the conference call will be
available shortly after the conclusion of the call. The replay
along with presentation materials relating the acquisition will be
available under the investor relations section of NN's website.
NN, Inc., a diversified industrial company, manufactures and
supplies high precision metal bearing components, industrial
plastic and rubber products and precision metal components to a
variety of markets on a global basis. Headquartered in Johnson City, Tennessee, NN has 26
manufacturing plants in North
America, Western Europe,
Eastern Europe, South America and China.
Except for specific historical information, many of the
matters discussed in this press release may express or imply
projections of revenues or expenditures, statements of plans and
objectives or future operations or statements of future economic
performance. These, and similar statements, are forward-looking
statements concerning matters that involve risks, uncertainties and
other factors which may cause the actual performance of NN, Inc.
and its subsidiaries to differ materially from those expressed or
implied by this discussion. All forward-looking information is
provided by the Company pursuant to the safe harbor established
under the Private Securities Litigation Reform Act of 1995 and
should be evaluated in the context of these factors.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "assumptions", "target",
"guidance", "outlook", "plans", "projection", "may", "will",
"would", "expect", "intend", "estimate", "anticipate", "believe",
"potential" or "continue" (or the negative or other derivatives of
each of these terms) or similar terminology. Factors which could
materially affect actual results include, but are not limited to:
general economic conditions and economic conditions in the
industrial sector, inventory levels, regulatory compliance costs
and the Company's ability to manage these costs, start-up costs for
new operations, debt reduction, competitive influences, risks that
current customers will commence or increase captive production,
risks of capacity underutilization, quality issues, availability
and price of raw materials, currency and other risks associated
with international trade, the Company's dependence on certain major
customers, and the successful implementation of the global growth
plan including development of new products. Similarly, statements
made herein and elsewhere regarding pending or completed
acquisitions are also forward-looking statements, including
statements relating to the anticipated closing date of an
acquisition, the Company's ability to obtain required regulatory
approvals or satisfy closing conditions, the costs of an
acquisition and the Company's source(s) of financing, the future
performance and prospects of an acquired business, the expected
benefits of an acquisition on the Company's future business and
operations and the ability of the Company to successfully integrate
recently acquired businesses.
For additional information concerning such risk factors and
cautionary statements, please see the section titled "Risk Factors"
in the Company's periodic reports filed with the Securities and
Exchange Commission, including, but not limited to, the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Except as required by law, we
undertake no obligation to update or revise any forward-looking
statements we make in our press releases, whether as a result of
new information, future events or otherwise.
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SOURCE NN, Inc.