Fives has acquired MAG Americas, a global supplier of machining solutions and composite processing. A subsidiary of the MAG Group, MAG Americas has developed strong relationships within the key and demanding industries it serves, such as aerospace, oil and gas, mining, agriculture and off-road vehicles. In 2012, it displayed a turnover of more than $400 million, of which 67 per cent was generated in North America.
This acquisition encompasses several business units: Giddings & Lewis, Cincinnati and Forest-Liné, specializing in composite processing and large metal cutting machines, as well as a unit dedicated to aftermarket services. It employs 1,000 people, located in the US, France, Canada, China and South Korea. It also comprises a portfolio of more than 100 patents.
The end-markets addressed by MAG Americas offer strong potential for development, notably through an increasing use of composite materials. Moreover, the North American domestic industrial markets, to which it is most exposed, benefit from strong market fundamentals. After completion of the transaction, Fives, thus becoming a significant global player in the machine tool industry – will strongly benefit from the dynamism of the American aerospace and oil & gas sectors, which create opportunities for the machining business.
Frédéric Sanchez, chairman of the Executive Board of Fives, says the acquisition “marks another step forward in the development of our Group, which will add to its portfolio the innovative know-how of more than 1,000 employees located in 5 different countries. As a global supplier of superior and innovative technologies and products, MAG Americas perfectly matches Fives’ strategy to focus on high value-adding industries, such as aerospace. Through this combination, we are also reinforcing our exposure to a well- positioned North American industry and opening to new opportunities for development in emerging countries.”
This acquisition is being carried out with the full support of AXA Private Equity, Fives’ main stakeholder, which contributes to this new step in Fives’ development.
Completion of the transaction is subject to customary closing conditions and regulatory approvals.