CLEVELAND, Oct. 14, 2022 (GLOBE NEWSWIRE) — Lincoln Electric Holdings, Inc. (LECO) (the “Company”) announced today that it has signed a definitive agreement to acquire Fori Automation, Inc. (“Fori Automation”) .
Fori Automation, a privately held automation engineering company founded in 1984, is a leading designer and manufacturer of complex multi-arm automated welding systems, with an extensive range of automated assembly systems, automated material handling solutions , large-scale automated industrial guidance. vehicles (AGV) and end-of-line test systems. Fori Automation primarily serves automotive and aerospace OEMs and is headquartered in Shelby Township, Michigan, USA, with additional operations in six international facilities in Europe, Latin America and Asia.
The acquisition will accelerate Lincoln Higher Standard 2025’s strategic goal of reaching $1 billion in automation sales by 2025 with the addition of innovative new automated capabilities, including large-scale assembly, automated handling and end-of-line test systems. These complementary solutions will expand Lincoln’s market presence within the attractive automotive sector, better position Lincoln Electric to capitalize on accelerating investment in automotive electric vehicle platforms, and provide cross-selling growth opportunities to customers. Lincoln industrialists. The acquisition would also expand Lincoln’s automation footprint in South Korea and India and expand Lincoln’s existing presence in Europe, China and Latin America. The acquisition of Fori Automation is expected to increase Lincoln Electric’s annual automation sales by approximately $225 million at EBIT margins comparable to Lincoln Electric’s current automation portfolio, and should be accretive to earnings.
“This transaction represents an exciting growth opportunity for both organizations by bringing together best-in-class automation platforms and engineering expertise to create value for all of our stakeholders and accelerate our growth and automation resources to advancing our Higher Standard 2025 strategy,” said Christopher. L. Mapes, Chairman, President and CEO of Lincoln. “Customers are increasingly investing in automation to efficiently grow their businesses, and our organizations are at the forefront of helping automotive, aerospace and industrial customers achieve their goals. operational.”
The definitive agreement provides for a cash purchase price of $427 million, subject to a customary working capital adjustment. The Company intends to finance the transaction with cash on hand and arranged credit. The proposed acquisition is subject to regulatory approval and other customary closing conditions and is expected to close in the fourth quarter of 2022.
About Lincoln Electric
Lincoln Electric is the world leader in the engineering, design and manufacture of advanced arc welding solutions, assembly systems, automated assembly and cutting, plasma and oxy-fuel cutting equipment , and holds a world leading position in brazing and brazing alloys. Lincoln is recognized as the Welding Expert™ for its materials science, software development, automation engineering and applications expertise that advances customers’ manufacturing capabilities to help them build a better world. Headquartered in Cleveland, Ohio, Lincoln has 56 manufacturing sites in 19 countries and a global network of distributors and sales offices serving customers in more than 160 countries. For more information about Lincoln Electric and its products and services, visit the company’s website at https://www.lincolnelectric.com.
The Company’s expectations and beliefs regarding the future contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current expectations and involve a number of risks and uncertainties. Forward-looking statements can generally be identified by the use of words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plans”, “guidance” or words of similar meaning. Actual results may differ materially from these statements due to various factors that could adversely affect the Company’s results of operations. These risks and uncertainties include our ability to complete the proposed acquisition of Fori Automation, including receipt of required regulatory approvals and satisfaction or waiver of other closing conditions; our ability to successfully integrate Fori Automation; our ability to achieve the growth expected from the acquisition of Fori Automation; and the Fori Automation acquisition being earnings accretive, on schedule or not at all. For more information, see “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
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