CHATTANOOGA, Tenn., May 31, 2023
/PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR), the World's
Largest Manufacturer of Towing and Recovery Equipment, today
announced that it has acquired Southern Hydraulic Cylinder, Inc., a
custom hydraulic cylinder manufacturer, in an all-cash transaction
for an aggregate purchase price of approximately $17.5 million, subject to certain pre- and
post-closing adjustments for cash and net working capital.
Southern Hydraulic Cylinder, headquartered in Athens, TN, specializes in the manufacture and
supply of custom-built, welded hydraulic cylinders for a variety of
industries. The acquisition will help bolster the Company's efforts
to improve the stability of its supply chain and is expected to be
accretive within the first year.
Chief Executive Officer, William G.
Miller, II, stated, "This is a significant step in improving
the security of our supply chain through vertical integration.
While this acquisition is immaterial to our consolidated financial
results, the sourcing flexibility this acquisition provides us
should have a positive impact on our ability to deliver finished
goods to our customers, reduce our inventory balance and execute
against our record backlog. Historically, hydraulic component parts
have had some of the longest lead times, so the ability to insource
this production is a significant advantage for us. There may also
be opportunities to improve the productivity of Southern Hydraulic
Cylinder by introducing automation and improving production
efficiency to further meet Miller Industries' increasing needs.
While we remain disciplined in our use of capital in looking at
potential areas to improve our operations, as we have previously
stated, we are a debt-averse company and reducing our debt will be
a top priority moving forward."
Mr. Miller, II, concluded, "Southern Hydraulic Cylinder has a
strong heritage within the region, and as fellow members of the
greater Chattanooga community, we
will work together to promote economic growth in the area. We look
forward to working with our new customers and continuing the great
quality and service they have come to expect."
Certain statements in this news release may be deemed to be
forward-looking statements, as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
identified by the use of words such as "may," "will," "should,"
"could," "continue," "future," "potential," "believe," "project,"
"plan," "intend," "seek," "estimate," "predict," "expect,"
"anticipate" and similar expressions, or the negative of such
terms, or other comparable terminology and include without
limitation any statements relating to the impact of the acquisition
of Southern Hydraulic Cylinder on the Company's supply chain and
ability to deliver finished goods to customers, reduce its
inventory balance and execute against its backlog, expectations
regarding the impact of the acquisition on the Company's financial
results, expectations regarding the ability to improve the
productivity and efficiency of the Southern Hydraulic Cylinder
business, and the Company's future priorities. Forward-looking
statements also include the assumptions underlying or relating to
any of the foregoing statements. Such forward-looking statements
are made based on our management's beliefs as well as assumptions
made by, and information currently available to, our management.
Our actual results may differ materially from the results
anticipated in these forward-looking statements due to, among other
things: changes in price, delivery delays and decreased
availability of component parts, chassis and raw materials,
including aluminum, steel, and petroleum-related products,
resulting from changes in demand and market conditions, the general
inflationary environment, the war in Ukraine, and the lingering effects of the
COVID-19 pandemic on supply chains; economic and market conditions,
including the negative impacts on the Company's customers,
suppliers and employees from increasing inflationary pressures,
economic and geopolitical uncertainties (including the war in
Ukraine); our dependence upon
outside suppliers for purchased component parts, chassis and raw
materials, including aluminum, steel, and petroleum-related
products; future impacts resulting from the war in Ukraine, which include or could include (among
other effects) disruption in global commodity and other markets,
increased prices for energy, supply shortages and supplier
financial risk; increased labor costs and the ability to attract
and retain skilled labor to manufacture our products; the potential
negative impacts of higher interest rates and other actions taken
by the federal government in response to economic volatility and
inflationary pressures, including the impact on our customers' and
end users' access to capital and credit to fund purchases; our
ability to raise capital, including to grow our business, pursue
strategic investments, and take advantage of financing or other
opportunities that we believe to be in the best interests of the
Company and our shareholders due to the significant additional
indebtedness we incurred during 2022; the cyclical nature of our
industry and changes in consumer confidence; special risks from our
sales to U.S. and other governmental entities through prime
contractors; changes in fuel and other transportation costs,
insurance costs and weather conditions; changes in government
regulations, including environmental and health and safety
regulations; failure to comply with domestic and foreign
anti-corruption laws; competition in our industry and our ability
to attract or retain customers; our ability to develop or acquire
proprietary products and technology; assertions against us relating
to intellectual property rights; changes in foreign currency
exchange rates and interest rates; changes in the tax regimes and
related government policies and regulations in the countries in
which we operate; the effects of regulations relating to conflict
minerals; the catastrophic loss of one of our manufacturing
facilities; environmental and health and safety liabilities and
requirements; loss of the services of our key executives; product
warranty or product liability claims in excess of our insurance
coverage; potential recalls of components or parts manufactured for
us by suppliers or potential recalls of defective products; an
inability to acquire insurance at commercially reasonable rates; a
disruption in, or breach in security of, our information technology
systems or any violation of data protection laws; and those other
risks referenced herein, and those risks discussed in our filings
with the Securities and Exchange Commission, including those risks
discussed under the caption "Risk Factors" in our Annual Report on
Form 10-K for the year ended December 31,
2022, which discussion is incorporated herein by this
reference. Such factors are not exclusive. We do not undertake to
update any forward-looking statement that may be made from time to
time by, or on behalf of, the Company.
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SOURCE Miller Industries, Inc.