Diversified manufacturer acquires auto supplier in $300M deal
A diversified manufacturer based in Johnson City, Tenn. is acquiring a local auto supplier in a $300-million deal.
NN, Inc. (NASDAQ: NN) said yesterday that it has signed a definitive agreement to acquire Autocam Corporation in Kentwood for $244.5 million in cash, $25 million in stock and the assumption of $30.5 million in debt.
Autocam Medical is not part of the sale.
As a result of the transaction, John Kennedy, founder and CEO of Autocam, will become a significant shareholder of NN. Additionally, it's the intention of the NN board of directors to consider Kennedy for a seat on its board.
NN anticipates the transaction to close in the third quarter, subject to customary closing conditions and regulatory approval.
The transaction is expected to be immediately accretive to NN's earnings.
NN makes high precision metal bearing components, industrial plastic and rubber products and precision metal components for a wide range of industries.
NN reported sales of $373 million in 2013.
Autocam makes complex system-critical components for fuel systems, engines, transmission, power steering and electric motors.
Autocam employs more than 2,100 employees and operates 15 facilities in the U.S., Europe, South America and Asia.
The company projects 2014 sales of approximately $250 million.
Following the close of the acquisition, Autocam will join NN's Precision Metal Components group, forming a new, dedicated Autocam products division.
“The combination of the Autocam team with NN's Whirlaway and VS businesses results in a strong precision-components business, with unparalleled technical capabilities, processes, systems and skilled program management, along with superior product-launch capabilities,” said Richard Holder, president and CEO, NN.
Holder said NN will continue to use the Autocam brand name “to preserve its strength and reputation in the marketplace.”
"Enormous opportunities" for Autocam
"We are very excited about joining the NN family,” Kennedy said. “This is a compelling strategic transaction that will create enormous opportunities for our employees and a superior experience for our customers. The fact that the Autocam brand will continue after the completion of the transaction is an honor to the legacy of our company and our team of tremendously talented people."