Machining equipment specialist MAG Americas, in Erlanger, Ky., will soon be part of a diverse Paris-based industrial engineering group, which announced the acquisition earlier this month, as reported previously here on IMT Machining Journal.
Details of the purchase still have not been revealed, but the acquisition to Fives (pronounced “feeve”) comes after efforts over the past year by the CEO of MAG Americas, Mo Meidar, to sell the business. The deal is expected to close in early June.
While it’s difficult to say at this point what effect the acquisition might have on the machine tool market, both companies have specialized technologies and market experience that could affect equipment development and capabilities.
Fives gains several business units along with machining and machine tool technologies from the acquisition, as well as a solid presence in North America. MAG Americas‘ business units include machine tool supplier Giddings & Lewis, machining and industrial software specialist Cincinnati, and French machine tool and composites processing company Forest-Line.
Fives also sees strong business potential in the many markets that MAG has developed for its process technologies for metals and composites. These include aerospace, which is seeing growing demand for civilian aircraft and engines; oil and gas; mining; large parts such as wind turbines; and transportation.
The French company, in a statement, said it will become “a significant global player in the machine tool industry” and “benefit from the dynamism” of the market sectors in which MAG Americas is most active.
For its part, MAG Americas sees little redundancy in the technologies and market focus of both companies. “There will be no direct overlap in what we do and what Fives does,” says John Logan, vice president of business development and marketing at the company, in an interview with IMT Machining Journal. Fives and MAG Americas will thus bring distinct product and marketing strengths to the union that can be used to expand the expertise and reach of the new business entity.
Logan confirms that Fives has an interest in building up its machine tool and factory automation capabilities and strengthening its North American business. Fives, whose history goes back 200 years, specializes in the design and development of process equipment, production lines, and turnkey plants for a number of industries. The markets it operates in include steel, aluminum, glass, cement, automotive, and energy.
One strength Fives has, Logan says, is a commitment to research and development. The company “has a strong track record” of ongoing R&D investment, he remarks, which should continue despite the cyclical nature of the machining business.
Among the specialty technologies Logan believes Fives will find most attractive at MAG Americas are automated composites manufacturing, which has a broad range of applications in aerospace; cryogenic machining; and titanium machining.
Fives is large and globally diverse. The company employs more than 6,500 and does business in 30 countries. Sales in 2012 were $2.3 billion. MAG Americas posted sales of $400 million last year, Logan says. It has around 1,000 employees across operations in the U.S. (which represents 67 percent of the company’s business), Canada, France, China and South Korea.