Fives Group Acquires MAG Americas

Former MAG IAS LLC businesses including Cincinnati, Giddings & Lewis, Forest - Liné, Liné Machines, and Global Services have joined the Fives Group.

 

MAG Americas, a machine tools firm based in Sterling Heights, Mich., supplies the aerospace industry with machine tools that are used to manufacture composite, aluminum, and titanium parts.

 

Fives, an industrial engineering group, provides process equipment, production lines, and turnkey plants for the biggest global players in the aluminum, steel, glass, automotive, logistics, cement, and energy sectors in both developing and developed countries.

 

With this strategic acquisition, Fives, headquartered in Paris, France, becomes one of the global leaders in high-precision machine tools used to manufacture large complex equipment and high performance composite processing machines. Fives achieves the global leadership position, in part, as a result of the acquisition of the three world-renowned MAG brands; Cincinnati, Giddings & Lewis and Forest-Liné.

 

The acquisition of these brands are in line with Fives’ ambition and strategy to further strengthen its position in high-growth sectors – such as the aerospace, renewable energy, mining, and special equipment sectors. These sectors experience increasing levels of demands, both in terms of the performance standards as well as in terms of the innovation capacity and ability.

 

Frederic Sanchez, president of the executive board of Fives, says:

 

"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 the growth strategy of Fives. It 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 global ambition to design and manufacture key production equipment and machines for leading industrial sectors such as aerospace, heavy equipment, and energy.

 

Strong brands such as Cincinnati, and all the related patents acquired from the MAG Group, are very complimentary to our portfolio of businesses and technologies.

 

In addition, the acquisition strengthens our global presence. It provides us with new opportunities in emerging markets and a greater footprint in the United States."

 

This acquisition strengthens Fives’ global position. In fact, 1,000 employees of MAG Americas, based in the United States, France, Canada, China, Korea, and Russia will join the 6,500 Fives’ employees in 30 countries. 

 

In January 2012, Fives acquired Keods, a company specializing in high-level consultancy in metallurgy, focused on improving the quality of flat carbon steel products, and in July 2012, Fives signed a contract, which is expected to be completed in the very near future, to acquire OTO Mills, a manufacturer of production equipment for steel tubes and profiles.