ParkOhio (NASDAQ: PKOH) announced today that it has signed a definitive
agreement with Milan, Italy based Star Capital SGR S.p.A. and other
minority shareholders to acquire Saet S.p.A headquartered in Turin,
Italy for approximately €18.4 million (approximately $22.9 million) in
cash. The transaction is expected to close by December 22, 2014, subject
to certain closing conditions.
Edward F. Crawford, Chairman and Chief Executive Officer, stated:
"ParkOhio continues to expand its interest in manufacturing of induction
heating equipment and parts and service centers. Saet is a strategic
acquisition with great technology and a strong brand name in induction
heating. Saet's locations complement our Ajax Tocco locations with
tremendous synergies. We believe that we are building a business that
will be the clear leader in induction heating capabilities worldwide."
Saet is a leader in the design, manufacturing and testing of induction
heating equipment and heat treat solutions. Saet operates through its
locations in Italy, China, India, and Tennessee. With over 4,000
machines installed all over the world, Saet machines are used for
hardening, tempering, and annealing for various industrial applications
in the agricultural, automotive and renewable energy markets. This
acquisition strengthens ATM's position as the global leader of induction
products and will add key technologies to an already diverse portfolio
of induction machine capabilities. ATM's worldwide network of customer
service centers and leading induction technologies are expected to
increase the sales of Saet's equipment and aftermarket products.
ParkOhio is a leading provider of supply management services and a
manufacturer of highly-engineered products. Headquartered in Cleveland,
Ohio, the Company operates 44 manufacturing sites and 55 supply chain
logistics facilities. ATM designs and manufactures world class induction
heating and melting equipment for various industries and applications
throughout the world. In addition, ATM provides a wide range of services
including laboratory process development, preventative maintenance,
equipment repair and parts, coil repair facilities, and installation
services through its locations in North America, South America, Europe,
and Asia.
This news release contains forward-looking statements, including
statements regarding future performance of the Company that are subject
to certain risks, uncertainties and assumptions. Should one or more of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those anticipated, estimated or projected.
These forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance and achievements, or industry results, to be materially
different from any future results, performance or achievements expressed
or implied by such forward-looking statements. These factors that could
cause actual results to differ materially from expectations include, but
are not limited to the following: our ability to consummate the Saet
acquisition, our ability to successfully integrate Saet and achieve the
expected results of the acquisition, including the acquisition being
accretive; our substantial indebtedness; the uncertainty of the global
economic environment; general business conditions and competitive
factors, including pricing pressures and product innovation; demand for
our products and services; raw material availability and pricing;
fluctuations in energy costs; component part availability and pricing;
changes in our relationships with customers and suppliers; the financial
condition of our customers, including the impact of any bankruptcies;
our ability to successfully integrate other recent and future
acquisitions into existing operations; the amounts and timing, if any,
of purchases of our common stock; changes in general domestic economic
conditions such as inflation rates, interest rates, tax rates,
unemployment rates, higher labor and healthcare costs, recessions and
changing government policies, laws and regulations, including the
uncertainties related to the current global financial crises; adverse
impacts to us, our suppliers and customers from acts of terrorism or
hostilities; our ability to meet various covenants, including financial
covenants, contained in the agreements governing our indebtedness;
disruptions, uncertainties or volatility in the credit markets that may
limit our access to capital; potential disruption due to a partial or
complete reconfiguration of the European Union; increasingly stringent
domestic and foreign governmental regulations, including those affecting
the environment; inherent uncertainties involved in assessing our
potential liability for environmental remediation-related activities;
the outcome of pending and future litigation and other claims and
disputes with customers; the outcome of the investigation being
conducted by the special committee of our Board of Directors; our
dependence on the automotive and heavy-duty truck industries, which are
highly cyclical; the dependence of the automotive industry on consumer
spending, which could be lower due to the effects of the recent
financial crises; our ability to negotiate contracts with labor unions;
our dependence on key management; our dependence on information systems;
our ability to continue to pay cash dividends; and the other factors we
describe under the "Item 1A. Risk Factors" included in the Company's
annual report on Form 10-K for the year ended December 31, 2013. Any
forward-looking statement speaks only as of the date on which such
statement is made, and we undertake no obligation to update any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by law. In light of these
and other uncertainties, the inclusion of a forward-looking statement
herein should not be regarded as a representation by us that our plans
and objectives will be achieved. The Company assumes no obligation to
update the information in this release.
Park-Ohio Holdings Corp.
Edward F. Crawford, 440-947-2000