ParkOhio (NASDAQ: PKOH) announced today that it has acquired the shares
of GH Electrotermia, S.A., headquartered in Valencia, Spain, from Miura
Private Equity. GH is a leader in the design, manufacturing and testing
of induction heating equipment and heat treat solutions. GH operates
through its locations in Spain, India, Germany, China and New York. With
over 4,000 machines installed worldwide, GH machines are used for
hardening, tempering, and annealing for various industrial applications.
This acquisition strengthens ParkOhio's Ajax Tocco Magnethermic's
position as the global leader of induction products and adds key
technologies to an already diverse portfolio of induction hardening
capabilities. ATM's worldwide network of customer service centers and
leading induction technologies are expected to increase the sales of
GH's equipment and enhance GH's global parts and service business.
Edward F. Crawford, Chairman and Chief Executive Officer, stated, "The
strategic acquisition of GH, with revenues of $55 million, was purchased
for approximately $31 million and will be immediately accretive to
earnings. The transaction was financed with a newly formed European bank
group led by BBVA."
ParkOhio is a diversified international company providing world-class
customers with a supply chain management outsourcing service, capital
equipment used on their production lines, and manufactured components
used to assemble their products. Headquartered in Cleveland, Ohio,
ParkOhio operates 45 manufacturing sites and 54 supply chain logistics
facilities, through three reportable segments: Supply Technologies,
Assembly Components and Engineered Products.
This news release contains forward-looking statements, including
statements regarding future performance of the Company, that are subject
to 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 successfully integrate GH and achieve expected synergies, including
the GH 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 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 review 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; our ability to negotiate contracts with labor unions;
our dependence on key management; our dependence on information systems;
and the other factors we describe under "Item 1A. Risk Factors" included
in the Company's Annual Report on Form 10-K for the year ended
December 31, 2015. 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.
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Park-Ohio Holdings Corp.
Edward F. Crawford, 440-947-2000