Shiloh Industries Signs Definitive Agreement With FinnvedenBulten AB To Acquire Finnveden Metal Structures AB
VALLEY CITY, Ohio, May 22, 2014 /PRNewswire/ -- Shiloh Industries, Inc. (NASDAQ: SHLO), a leading supplier of lightweighting, noise and vibration solutions, has signed a definitive agreement with FinnvedenBulten AB to acquire 100 percent of the shares of Finnveden Metal Structures (FMS). Through this acquisition, Shiloh's capabilities are expanded with the addition of stamping and magnesium die casting, a key growth segment and technology to address the lightweighting needs of automakers. Additionally, Shiloh adds a European foothold and expands its customer base. The acquisition, valued at SEK 372.3 million (approximately USD $56.6 million), is expected to close at the end of June.
"We are continually evaluating the lightweighting needs of the industry, identifying new technologies that address those needs, and integrating them into Shiloh's lightweighting portfolio," said Ramzi Hermiz, president and chief executive officer, Shiloh Industries. "By adding the magnesium capabilities of FMS, Shiloh now has the broadest portfolio of lightweighting solutions in the industry. Together, we believe our unique ability to provide solutions in steel, steel alloys, aluminum and magnesium through multiple processes will increase our value proposition to the market."
The acquisition of FMS positions Shiloh as a global supplier, with stamping and magnesium die casting facilities strategically located in Poland, and well-positioned stamping operations in Sweden. The new additions are a perfect complement to the company's existing operations throughout the U.S. and Mexico. FMS represents nearly USD $180 million in annual sales revenue along with adding approximately 800 talented employees and a strong senior leadership team.
As a leader in lightweighting solutions, Shiloh provides design, engineering and manufacturing of engineered welded blanks, complex stampings, modular assemblies and high pressure aluminum die cast and machined components serving the body-in-white, chassis, emission, powertrain, structural and seating needs of OEM and Tier 1 customers.
"Many of our customers are looking for suppliers who can support them globally, and given our current customer base, Europe is a significant market for Shiloh," said Brad Tolley, vice president of strategy and market development, Shiloh Industries. "As we looked to expand into Europe, what we found with FMS was a seasoned management team with strong leadership which is critical for future growth."
"Shiloh's continued success can be attributed to our key tenets of leading with technology and innovation, achieving sustainable, global, profitable growth, and acting with a sense of purpose and speed," added Hermiz.
About Shiloh Industries, Inc.
Headquartered in Valley City, Ohio, Shiloh Industries is a leading supplier, providing lightweighting and NVH solutions to automotive, commercial vehicle and other industrial markets. Shiloh produces lightweight products for body-in-white, exhaust, powertrain, structural and seating needs of OEM and Tier 1 customers. The company has (14) locations across North America, and has approximately 2,000 employees.
Forward Looking Statement
Certain statements made by Shiloh Industries, Inc. in this release are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of management's assumptions and expectations. As a result, there can be no guarantee or assurance that these assumptions and expectations will in fact occur. Please refer to the investor page of www.shiloh.com for additional information on forward-looking statements.
SOURCE Shiloh Industries, Inc.