Allied Motion to acquire Heidrive
Allied Motion Technologies Inc. has signed an agreement to acquire 100% of the stock of Heidrive GmbH, a Germany-based manufacturer of motion control systems.
The transaction is expected to close early in the first quarter of 2016. The purchase price of €20 million (approximately $22 million).will be partially funded with existing cash plus borrowings under the company’s revolving credit facility, which Allied and its banks have agreed to amend to increase borrowing capacity to $30 million from $15 million.
Founded in 1938 and headquartered in Kelheim, Germany, Heidrive designs and manufactures synchronous motion systems for highly demanding applications. Products include a variety of motors, gears and electronic controls. Motors range from servo and brushless DC motors, to AC induction and shaded pole motors. Heidrive’s gears are designed for heavy duty use and include planetary, flat, helical and worm gears, and its electronic controls are suitable for various types of engines, facilitating dynamic movement and rapid positioning. The products are used in a broad range of applications from medical technology and robotics to cargo aviation and building technologies, as well as a variety of commercial applications. Its products are manufactured at Heidrive’s facilities in Kelheim, Germany and Mrakov, Czech Republic and supported by its approximately 220 employees.
Heidrive expects 2015 revenue of approximately €29 million ($32 million).
“The addition of Heidrive furthers our growth strategy, enabling us to expand our geographic reach and broaden our product and technical capabilities,” said Richard S. Warzala, Allied Motion’s chairman and chief executive officer. “We believe that these enhanced technical competencies will allow us to compete more effectively in our existing markets as well as new markets brought to us by Heidrive. We are enthusiastic about our prospects and that the utilization of Allied Systematic Tools will lead us to continuous improvements in quality, delivery, cost and innovation as well as create significant value for our stakeholders.”
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