Fives acquires MAG Americas

Thanks to its high innovation track record, it has developed strong relationships within the key and demanding industries it serves, such as aerospace, oil & gas, mining, agriculture and off-road vehicles. In 2012, it displayed a turnover of around $400m, of which 67% was generated in North America.This acquisition encompasses several business units: Giddings & Lewis, Cincinnati and Forest-Liné, specializing in composite processing and large metal cutting machines, as well as a unit dedicated to aftermarket services. It employs around 1,000 people, located in the United States, France, Canada, China and South Korea. It also comprises a portfolio of more than 100 patents.The end-markets addressed by MAG Americas offer strong potential for development, notably through an increasing use of composite materials. Moreover, the North American domestic industrial markets, to which it is most exposed, benefit from strong market fundamentals. After completion of the transaction, Fives, thus becoming a significant global player in the machine tool industry – will strongly benefit from the dynamism of the American aerospace and oil & gas sectors, which create opportunities for the machining business.Frédéric Sanchez, Chairman of the Executive Board of Fives, said: “This acquisition marks another step forward in the development of our Group, which will add to its portfolio the innovative know-how of more than 1,000 employees located in 5 different countries. As a global supplier of superior and innovative technologies and products, MAG Americas perfectly matches Fives’ strategy to focus on high value-adding industries, such as aerospace. Through this combination, we are also reinforcing our exposure to a well positioned North American industry and opening to new opportunities for development in emerging countries.”Fives is an industrial engineering group born 200 years ago. It designs and manufactures process equipment, production lines and turnkey plants for the world’s largest industrial companies in the aluminum, steel, glass, automotive, logistics, cement and energy sectors, both in emerging and developed countries.www.fivesgroup.com