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.
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SOURCE Shiloh Industries, Inc.