French machining giant Fives completes MAG acquisition
The deal, which was struck in may 2013, includes big name manufacturing players Cincinatti, Giddings & Lewis and Forest-Liné
Paris—French heavy machinery engineering and manufacturing firm Fives has completed its acquisition of MAG Americas.
The deal, which includes MAG’s three global brands—Cincinnati, Giddings & Lewis and Forest-Liné—and boosts its position as a manufacturer of high-precision machine tools used to make large, complex equipment and high performance composite processing machines.
MAG Americas’ 1,000 employees based in the U.S., France, Canada, China, Korea and Russia will join the 6500 Fives’ employees in 30 countries
The acquisition is part of the Paris-based firm’s strategy to position itself in high-growth sectors such as the aerospace, renewable energy, mining and special equipment sectors, which all see increasing demand for better performance and innovation capacity.
“The technological expertise gained through the acquisition of MAG Americas is key to successfully support and achieve the innovation strategies and requirements of our major customers,” said Frederic Sanchez, president of the Executive Board of Fives.
Sanchez also said the plan was to to acquire a leading position in the technology of composite materials, which the company anticipates to have a bright future in many industrial sectors.
World-renowned brands such as Cincinnati, and all the related patents acquired from the MAG Group, should power Five’s portfolio of businesses and technologies for years to come.
“In addition, the acquisition provides us with new opportunities in emerging markets and a greater footprint in the United States,” Sanchez said.
In 2012, MAG Americas posted $400 million in revenue, 67 per cent of which was achieved in the U.S.
Fives in January 2012 acquired Keods, a high-level consultancy in metallurgy, focused on improving the quality of flat carbon steel—crucial for product mix development in steel manufacturing, especially for automotive.
In July 2012, Fives signed a contract to acquire OTO Mills, an Italian manufacturer of production lines for welded steel tubes and automation systems for the steel industry.
OTO, which employs 250 engineers and technicians, is expected hit revenues of about 90-million Euros, half of which is through sales in North and South America.
Fives is an industrial engineering group that provides process equipment, production lines and turnkey plants for the biggest global players in the aluminum, steel, glass, automotive, logistics, cement and energy sector in both developing and developed countries.
In 2013, Fives is forecasted to achieve 2-billion Euros in revenue and will have more than 7,500 employees in thirty countries.