HOMAG Group AG acquires US distribution and service partner
Shareholding in Stiles Machinery Inc. increased from 26.7 to 100 percent of voting capital | Position in growth market USA to be strengthened | Valuable addition to the global sales organization
HOMAG Group, the world’s leading manufacturer of plant and machinery for the woodworking industry and cabinet makers has, effective as of February 3, 2014 increased its share in the voting capital of the US distribution and service company Stiles from 26.7 to 100 percent. The shares were sold by Peter Kleinschmidt who headed up the company for 39 years and is now retiring from active business. Even after the acquisition, he will be available to provide advice as a member of the supervisory board of Stiles.
HOMAG Group´s CEO Dr. Markus Flik emphasizes: “Within our industry, the US is one of the dynamic markets with growth opportunities and is for us of strategic importance. As market leader in the US, we are acquiring the leading distribution and service organization in this industry. Increasing our interest in Stiles which we have held since 1992 is the only logical step. This measure allows us to benefit directly from the anticipated re-industrialization in the US in which we will now play a role on account of our direct market access.”
Having a relevant market share in excess of 35 percent, Stiles is the leading distribution and service organization for machines and production lines for the US woodworking industry. With more than 290 employees, Stiles generated annual sales revenue of about USD 158 million in 2013. This constitutes a rise on 2012 of 22 percent. On account of the increase in industrial activity and the great need for investment, experts also anticipate similar growth rates in the next few years both for stand-alone machines and production lines. The company will continue to trade as Stiles Machinery Inc.
“We now have a more direct link to our customers in the US”, explains Jürgen Köppel, HOMAG Group’s CSO. “Stiles’ highly qualified sales and service team have built up excellent customer relationships. HOMAG Group Engineering with its project expertise allows us to serve the growing US project business more intensively and provide the best possible support to our customers with global operations.”
Peter Kleinschmidt, the owner of the company for many years, is pleased that his business is being acquired by the HOMAG Group: “I know that my life’s achievement is being placed in good hands. I have been cooperating closely with the HOMAG Group for more than 30 years. It is the ideal partner to write the next chapter in Stiles’ success story.”
This press release contains certain statements relating to the future. Future-oriented statements are all those statements that do not pertain to historical facts and events or expressions pertaining to the future such as “believes”, “estimates”, “assumes”, “forecasts”, “intend”, “may”, “will”, “should” or similar expressions. Such future-oriented statements are subject to risks and uncertainty since they relate to future events and are based on current assumptions of the Company, which may not occur in the future or may not occur in the anticipated form. The Company points out that such future-oriented statements do not guarantee the future; actual results including the financial position and the profitability of the HOMAG Group as well as the development of economic and regulatory framework conditions may deviate significantly (and prove unfavorable) from what is expressly or implicitly assumed or described in these statements. Even if the actual results of the HOMAG Group including the financial position and profitability as well as the economic and regulatory framework conditions should coincide with the future-oriented statements in this announcement, it cannot be guaranteed that the same will hold true in the future.