Standex acquires Metal Spinners Group Ltd.
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
