Allied Motion Technologies Completes Purchase Of Östergrens Elmotor In Sweden
Allied Motion Technologies Inc. (NASDAQ: AMOT) announced today it has completed the purchase of 100% of the stock of Östergrens Elmotor AB (Östergrens), headquartered in Solna, Sweden that was previously announced on December 17, 2010. The amount paid at closing was $8.3 million, consisting of approximately $7.4 million of cash and 136,700 shares of common stock of Allied Motion. Additional amounts may be paid in cash to the sellers based on Östergrens meeting certain performance criteria through the end of 2011. Allied Motion funded the acquisition primarily with cash on hand, as well as utilization of the Company’s existing credit facility. For reference purposes, the original Press Release announcing the agreement follows in its entirety.
Östergrens has extensive expertise in designing drive electronics, software and mechanical processes. The products are manufactured at Östergrens’ facilities in Sweden and China. Östergrens’ current products integrate their electronics expertise with other motion control products such as motors and gears. Their products are sold to OEM customers throughout Europe and are used in a wide variety of industrial, commercial and medical applications, including emerging “Green Technology” alternative energy and electric vehicle applications, leading-edge medical instrumentation and test equipment applications and a wide variety of other industrial and commercial applications in which Östergrens’ products improve the efficiency/performance of the OEM’s products. For 2009, Östergrens had revenues of approximately U.S. $15 million, and total assets at September 30, 2010 were approximately U.S. $5.6 million. For the nine months ended September 30, 2010, Östergrens has experienced an increase in revenue to an annualized amount of approximately U.S. $17 million and improved profits compared to the same period of last year.
“The addition of Östergrens launches the next chapter in the development of our company,” commented Dick Warzala, President and CEO of Allied Motion. “This acquisition furthers our growth strategy by enabling us to expand our geographic coverage and our technical capabilities to compete more effectively in both our existing and additional new markets by approaching each application from a complete 'Motion Control Solution' perspective. Östergrens will become a part of our existing Allied Motion Europe operations and will report to Harry Cloos, the current General Manager of Allied Motion Premotec. Börje Östergren, the Managing Director of Östergrens will continue in his current role and will also assist in the development of Allied Motion Solution Centers in other regions of the world.”
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