ERWIN, Tenn., July 6 /PRNewswire/ -- NN Ball & Roller, Inc. (Nasdaq: NNBR)
an independent manufacturer and supplier of high-quality, precision steel
balls and rollers to domestic and international anti-friction bearing
manufacturers, today announced the acquisition of Industrial Molding
Corporation (IMC), a privately held company, headquartered in Lubbock, Texas.
Founded in 1947, the Company is a premier full-service designer and
manufacturer of plastic injection molded components.
IMC supplies a wide range of products to the bearing, automotive,
electronic, leisure and consumer markets with an emphasis on value-added
products that take advantage of its unique capabilities in product
development, tool design, and tight tolerance molding processes. The Company
operates two manufacturing facilities located in Lubbock, Texas. Its
principal product segments include bearing retainers, automotive seals and
components, instrument cases, precision connectors for fiber optics, and
consumer hardware. Total revenues amounted to $28.1 million in 1998.
Roderick R. Baty, President and Chief Executive Officer of NN Ball and
Roller, said, "IMC is an ideal first acquisition for NN Ball & Roller. The
Company clearly meets the specific criteria we developed in our strategic
growth plan. First and foremost, it is a profitable, well-managed company with
similar culture and values. Second, it builds upon NN's core business
strengths and relationships with approximately one-third of its revenues
derived from precision bearing retainers. Further, IMC provides additional
growth opportunities outside NN's traditional markets through its diverse
engineered plastic offerings serving a variety of non-bearing industries."
James Earsley, Chairman of IMC, said, "I am very pleased to say that we
will be joining forces with a company that shares our customer and employee
values. Additionally, we have significantly enhanced our ability to
capitalize on our strong growth and profit opportunities by combining
resources with NN."
Mr. Baty went on to say, "IMC has a number of core competencies and key
business strengths that position it for increased growth and profitability.
Its depth of resources has enabled it to foster strong, long-term
relationships with a diverse customer base. In fact, its leading in-house
design and tooling capabilities enables them to work closely with customers at
the concept stage of product development. IMC's precision custom molding and
advanced engineering capabilities are reflected by its broad product offering
which includes over 600 components in active production. Looking forward, IMC
is well positioned to leverage these strengths to expand its leading presence
in existing industries and expand in rapidly growing market segments. In
summary, we are very excited about the additional growth opportunities this
new business will bring to NN," concluded Mr. Baty.
NN Ball & Roller acquired IMC for $23.5 million in cash and 440,038 shares
of common stock, a transaction valued at approximately $26 million. The
acquisition will be accounted for using the purchase method of accounting and
is expected to be accretive to NN's earnings in 1999.
NN Ball & Roller, Inc., is an independent manufacturer and supplier of
high-quality, precision steel balls and rollers to both domestic and
international anti-friction bearing manufacturers. Precision steel balls and
rollers are critical moving parts of anti-friction and quiet bearings, which,
in turn, are integral components of machinery with moving parts, such as
electric motors, water pumps, air conditioners, generators, fans, conveyors,
and other machinery used in a variety of automotive and industrial
SOURCE NN Ball & Roller, Inc.