On July 29, Fives (Paris, France) announced that it had consummated its acquisition of MAG Americas (Hebron, Ky.). With this strategic deal, Fives becomes one of the global leaders in high-precision machine tools used to manufacture large, complex equipment, including several lines of high-performance composites processing machines. Included in the acquisition are three MAG brands: MAG Cincinnati, Giddings & Lewis and Forest-Liné (the latter was acquired by MAG Europe GmbH in 2011). The deal solidifies Fives’ intention to strengthen its position in high-growth sectors, including aerospace, renewable energy, mining and special equipment.
Frederic Sanchez, president of the Fives executive board, said, “The technological expertise gained through the acquisition of MAG Americas is key to successfully support and achieve the innovation strategies and requirements of our major customers. Acquiring MAG Americas fits well with our growth strategy and allows us, on one hand, to acquire a leading position in the technology of composite materials, which is anticipated to have a bright future in many industrial sectors. Secondly, it enables us to achieve our ambition to design and manufacture key production equipment and machines for leading industrial sectors such as aerospace, heavy equipment, and energy. It also provides us with new opportunities in emerging markets and a greater footprint in the United States.”
The employees of MAG Americas, based in the U.S., France, Canada, China, South Korea and Russia will join 6,500 Fives employees in 30 countries. In 2012 MAG Americas achieved a turnover of approximately $400 million, 67 percent of which was generated in the U.S.
Since January, Fives also has acquired two other companies, one a metallurgical consultancy and the other an Italian manufacturer of automated systems for steel tubes and profiles aimed at the oil and gas sector.
Fives is an industrial engineering group with a 200-year heritage in engineering. Fives forecasts a turnover of €2 billion ($2.65 billion USD) in 2013.