News

Posted On: 07/12/2006

Recent mergers and acquisitions

PlantServices.com

SKF acquires Macrotech Polyseal: SKF has acquired 51% of the shares of the North American seals company Macrotech Polyseal Inc. As part of the agreement, SKF will acquire the remaining 49% within three years. Macrotech is a leader in fluid power seals based on polyurethane (PU) technologies and engineered plastics (mainly PTFE) for U.S. industries. Macrotech is based in Salt Lake City, Utah, with two factories and 397 employees. Yearly sales amount to approximately $33 million. The purchase price for 51% of the shares of the company was approximately $21 million.

The product range comprises mainly injection molded PU hydraulic seals. The biggest customer segments are fluid power (mainly hydraulics) and process equipment. Some 95% of Macrotech's customers are to be found in the North American market.

This acquisition strengthens SKF's position in industrial seals by bringing to the group new products and new technologies. Geographically, SKF's global organization will also be able to bring Macrotech's products to markets outside North America.

KCI Konecranes acquires 100% of MMH Holdings: After announcing acquisition of 59.2% of the shares on MMH Holdings on May 19, Konecranes Inc.’s subsidiary, HMM Acquisition Corp., further increased its stake to 96.7% in a series of transactions, and then completed a short-form merger. Konecranes, Inc. now owns 100% of MMH Holdings shares. Subsequently, KCI Konecranes raised its sales growth estimate for 2006 to 35% over 2005 compared to a previous estimate of more than 25%. The revision to previously announced growth figures is primarily the result of the acquisition of MMH Holdings, the owner of U.S.-based Morris Material Handling.

“Konecranes is known worldwide for leading-edge lifting technology, and Morris Cranes is a well-established company with a very large installed crane base in North America,” says Tom Sothard, president of KCI Konecranes’ Region Americas in Springfield, Ohio. “As Konecranes’ service technology merges with this well-accepted brand, industry can look forward to these two strong engineering companies bringing the best of each product offering to their respective customer bases.”

Rockwell Automation to sell Dodge and Reliance: Rockwell Automation plans to sell its Dodge mechanical and Reliance Electric motors and motor repair services businesses. Producers of mechanical power transmission products and industrial motors, they are the principal businesses of the company’s Power Systems reporting segment. Rockwell Automation will retain the Reliance Electric- and Reliance-branded drives and related parts and services as an integral part of its global drives and customer service businesses.

The transaction stems from Rockwell Automation’s ongoing efforts to enhance shareowner value.

The company doesn’t expect this transaction to change its priorities for cash deployment, but will engender an even greater focus on power and integrated control and information solutions to meet customers’ business needs.

“Power Systems is a great business with an outstanding management team, strong domain expertise, and leading market positions,” says Keith Nosbusch, chairman and CEO of Rockwell Automation. “We believe that they will benefit from ownership dedicated to investing and globalizing to sustain their growth as the premier providers of power transmission and conversion solutions.”