German manufacturer acquires $153M CNC distributor
A German manufacturer of machinery for the woodworking and cabinet industries is acquiring its longtime partner and distributor of advanced CNC equipment with $153 million in annual sales.
HOMAG Group in Schopfloch, Germany said Monday that it has “increased its share in the voting capital” of Grand Rapids-based Stiles Machinery from 26.7 to 100 percent.
Terms of the deal were not disclosed.
Stiles Machinery, which has a “relevant market share” in excess of 35 percent, employs 290 people and will continue to operate under the name Stiles.
Stiles Machinery distributes equipment used in processing wood panels, solid wood, composites, plastic, glass, stone and other materials.
Stiles’ shares were sold by Stiles President Peter Kleinschmidt, who became the majority owner of the company in 1985.
Kleinschmidt has decided to retire, although he will stay on as a member of Stiles’ supervisory board.
“I know that my life's achievement is being placed in good hands,” Kleinschmidt said. “I have been cooperating closely with the HOMAG Group for more than 30 years. It is the ideal partner to write the next chapter in Stiles' success story.”
HOMAG Group's CEO Markus Flik said the U.S. is a dynamic and strategic market with “growth opportunities” for HOMAG.
He added that the Stiles acquisition will give HOMAG “direct market access” and allow it to “benefit directly from the anticipated re-industrialization in the U.S.”
“As market leader in the U.S., we are acquiring the leading distribution and service organization in this industry,” Flik said. “Increasing our interest in Stiles, which we have held since 1992, is the only logical step."
The German manufacturer will tap into Stiles' customer relationships, said Jürgen Köppel, HOMAG Group's CSO.
“Stiles' highly qualified sales and service team have built up excellent customer relationships,” Köppel said. “HOMAG Group Engineering, with its project expertise, allows us to serve the growing U.S. project business more intensively and provide the best possible support to our customers with global operations.”
HOMAG is traded on the Frankfurt stock exchange.