|Standex Acquires Metal Spinners Group|
Provides Spincraft with High-Efficiency Manufacturing Capabilities and Access to a Broader Customer Base
SALEM, N.H., Mar 08, 2011 (BUSINESS WIRE) --
Standex International Corporation(NYSE:SXI) today announced that it has acquired Metal Spinners Group Ltd., a U.K.-based metal fabrication supplier to the medical, general industrial and oil and gas markets in the U.S., U.K., and China. Joining Spincraft as a unit within Standex's Engineering Technologies Group, Metal Spinners Group will provide the Company with access to new end-user and geographic markets, as well as high-efficiency metal fabrication capabilities and a customer base that includes global leaders in the medical device industry. Terms of the transaction were not disclosed. The acquisition was funded substantially with Standex's foreign cash on hand and is expected to become accretive to earnings during the first full year of ownership. 1
Privately held Metal Spinners Group, a subsidiary of Precision Engineering International Ltd., recorded revenue of approximately US$19.2 million for the 12 months ended December 31, 2010. The company operates two plants in the Newcastle, U.K. area with approximately 100 employees who supply European, U.S., and Chinese customers with complex metal components and assemblies for applications primarily in the medical device, general industrial and oil and gas sectors. Many of these applications require the high-efficiency, high precision metal forming capabilities in which Metal Spinners specializes.
"Metal Spinners Group Ltd. is an exceptionally strong synergistic fit with our Spincraft business and a significant addition to the Standex portfolio," said Roger Fix, President and Chief Executive Officer of Standex International. "Acquiring this highly regarded company opens doors for Spincraft with important European customers and establishes a presence for us in end-use markets in Europe and the United States that we have been targeting for some time. Chief among them are the medical device and general industrial markets where Metal Spinners is a leading supplier of fabricated components in applications ranging from magnetic resonance imaging (MRI) to offshore oil and gas drilling platforms. In addition, Metal Spinners Group provides Spincraft with high efficiency, high precision, manufacturing capabilities that will enable us to expand our relationships with existing customers, address new applications and win new accounts.1"
"We look forward to embarking with Metal Spinners Group on an exciting, two-way technology exchange that will accelerate the growth of both businesses," said Len Paolillo, President of the Standex Engineering Technologies Group. "Complementing Spincraft's expertise in metal forming, machining, welding, and fabrication to extremely close engineering tolerances with Metal Spinners' experience and advances in metal forming will create a compelling value proposition for customers. At the same time, we expect to leverage these combined capabilities by applying Spincraft's strengths in marketing and sales to generate increased awareness of Metal Spinners Group as a trusted provider of engineered solutions for complex components and assemblies in a wide variety of applications and industries.1"
The acquisition of Metal Spinners is expected to be dilutive to Standex's earnings in the third quarter of fiscal 2011 in the range of $.03-.04 per diluted share, and from $0.00 to $0.01 of dilution in the fourth quarter of the fiscal year due to the impact of purchase accounting and acquisition related expenses.1 Standex expects that Metal Spinners will contribute $.14-.17 per diluted share to earnings in fiscal 2012.1
About the Standex Engineering Technologies Group
The Standex Engineering Technologies Group is a key supplier of complex assemblies and components to the aerospace, aviation, marine and energy industries. Using a range of comprehensive metal working and assembly processes, Spincraft delivers integrated, single-source manufacturing solutions for complex components and assemblies of every scope. With locations in North Billerica, Massachusetts and in New Berlin, Wisconsin, the company offers world-class capabilities for metal spinning, heat-treating, machining, welding and fabrication for virtually all workable metal alloys. Spincraft components and assemblies can be found in today's most advanced space launch vehicles, commercial and military aircraft, naval nuclear propulsion systems and in situ gas turbines. For more information, visit the Group's website at http://www.spincraft.net.
Standex International Corporation is a multi-industry manufacturer in five broad business segments: Food Service Equipment Group, Air Distribution Products Group, Engineering Technologies Group,Engraving Group and the Electronics and Hydraulics Group with operations in the United States, Europe, Canada, Australia, Singapore, Mexico, Brazil, India, Turkey and China. For additional information, visit the Company's website at www.standex.com.
1 Safe Harbor Language
Statements in this news release include, or may be based upon, management's current expectations, estimates and/or projections about Standex's markets and industries. These statements are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may materially differ from those indicated by such forward-looking statements as a result of certain risks, uncertainties and assumptions that are difficult to predict. Among the factors that could cause actual results to differ are uncertainty in conditions in the financial and banking markets, general domestic and international economy including more specifically increases in raw material costs, the ability to substitute less expensive alternative raw materials, the ability to continue to successfully implement productivity improvements, increase market share, access new markets, introduce new products, enhance our presence in strategic channels, the successful expansion and automation of manufacturing capabilities the ability to continue to achieve cost savings through lean manufacturing, cost reduction activities, and low cost sourcing, effective completion of plant consolidations and the other factors discussed in the Annual Report of Standex on Form 10-K for the fiscal year ending June 30, 2010, which is on file with the Securities and Exchange Commission, and any subsequent periodic reports filed by the Company with the Securities and Exchange Commission. In addition, any forward-looking statements represent management's estimates only as of the day made and should not be relied upon as representing management's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company and management specifically disclaim any obligation to do so, even if management's estimates change.
SOURCE: Standex International Corporation
Standex International Corporation