Boston, MA 07/23/2014 (wallstreetpr) – NN, Inc.(NASDAQ:NNBR) on Monday, July 21, 2014 announced to get involved into a definitive agreement in order to get hold of Autocam Corporation. The transaction has been valued as $244.5 million in cash, $25.0 million in stock and approximately $30.5 million in debt.
NN to acquire Autocam by 3Q
The entire transaction is probable to be immediately accretive to earnings. Furthermore, NN foresees to end the trade in the 3Q2014, subjected to customary concluding circumstances and regulatory endorsement. KeyBanc Capital Markets, Inc. stood as the advisor for NN Inc.
Medical business, not in the transaction
The Autocam, the leading company for engineering, manufacturing as well as assembling high complex vehicle parts, headquartered in Grand Rapids, Michigan, expected 2014 sales to surpass $250 million. However, the expected annual sales of 2014 do not incorporate almost $42 million, which is from 49% Chinese collaboration under the equity method. The vehicle parts manufacturing company recruits 2,100 employees and holds its business in 15 venues in South America, the U.S., Asia, and Europe. However, the medical business of Autocam will be out of this transaction.
Fusing of Autocam with NN’s ‘Precision Metal Components Segment’
On closure of the acquisition of Autocam by NN Inc, the Autocam team will form a new segment (Autocam product segment) by fusing NN’s Precision Metal Components Segment. The transaction will direct the Founder and CEO, John Kennedy of Autocam to become a considerable shareholder of NN. The transaction will also assist Mr. Kennedy to hold a position in the Board of NN.
The executives’ comments
The CEO and president of NN, Inc. (NASDAQ:NNBR), Richard Holder while commenting on the transaction mentioned that the acquisition will bring together both the reputed brands, NN and Autocam. The sharing of technologies and expertise will prove to march up towards the goal to produce exceptional products and services for the customers, Holder said. Mr. Kennedy also expressed excitement on joining the dignified group of NN.
