Aquisition of R&B Machine Tool Company Complete
1 July 1998
Lamb Technicon's Parent Completes Acquisition of R&B Machine Tool Company; New Division to Expand Opportunities for Both R&B and Lamb Technicon
WARREN, Mich.--June 30, 1998--The parent company of Lamb Technicon Machining Systems, UNOVA, Inc. , today completed its acquisition of R&B Machine Tool Company of Saline, Mich. Financial details of the transaction were not disclosed.The acquisition is expected to add approximately $60 million to UNOVA's annual revenues, and should be accretive to earnings within the first year.
R&B's current president, Milton Stemen, will become Vice President and General Manager of the R&B Machine Tool Division of Lamb Technicon Machining Systems, reporting to Charles E. Wolfbauer, President. It is expected that all R&B employees will continue with UNOVA.
The addition of R&B strengthens Lamb Technicon's position in the North American specialty machine and retooling market for Tier One and Tier Two automotive and non-automotive component suppliers and is generally complementary to the activities of the Company's Michigan Machine & Engineering (MM&E) operation.
"R&B's excellent reputation and strong, diverse customer base should allow Lamb Technicon to penetrate new markets for its manufacturing systems," said Clayton A. Williams, UNOVA Senior Vice President and head of the Company's Industrial Automation Systems segment. "R&B's position as a leading developer of small- and medium-volume machining centers will allow Lamb to build a greater share of the $1.7 billion market for small component manufacturing systems."
"More than 70 percent of R&B's customers are component suppliers outside our traditional markets," added Wolfbauer. "This group is becoming more important as global car makers and other companies increasingly outsource subsystems to their Tier One and Tier Two suppliers."
"This new relationship gives R&B an important opportunity to grow beyond its current markets as well as the ability to better serve its existing customers," said Stemen. "We look forward to making a positive contribution to both Lamb Technicon and the UNOVA organization."
To enhance its product offerings to the small part manufacturing market, Lamb Technicon is introducing a series of newly designed single- and dual-spindle CNC machining centers. These products were primarily developed as flexible modules for Lamb's large, integrated production systems, but they also serve the requirements of R&B's existing customer base.
"R&B's high-volume machine production skills and resources can help us efficiently produce these new systems," added Wolfbauer. "This capability should accelerate system design and integration, reduce costs and improve our competitive position in all our machining systems markets."
"UNOVA has a strong track record of acquiring promising businesses and building them into world leaders," concluded Williams. "With our international experience, customer base and extensive resources, UNOVA should provide R&B with many new and exciting opportunities."
Lamb Technicon Machining Systems, based in Warren, Mich., is a leading designer, developer, integrator and builder of dedicated and flexible manufacturing systems for the global automotive, diesel engine and off-road vehicle industries.
UNOVA is a $1.5 billion industrial technologies company. Headquartered in Beverly Hills, Calif., UNOVA is a leading designer and integrator of sophisticated manufacturing systems, primarily for the global automotive industry, and a market leader in the development and manufacture of automated data collection and mobile computing products and networks for industrial, distribution and government applications.
Certain forward-looking statements in this release (as defined by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934) relate to matters that are not historical facts. They include, but are not limited to, statements about the demand for the Company's products and services , the Company's ability to profitably exploit new technologies acquired or developed, and the Company's ability to realize its intentions with respect the future performance of operations being acquired. Such forward-looking statements involve and are dependent upon certain risks and uncertainties. These include, but are not limited to, the following which are beyond the Company's control: the presence of competitors with greater financial and other resources; technological changes and developments; regulatory uncertainties; worldwide political stability and economic conditions; operating risks associated with international activities; the risk that the Company's due diligence procedures may have failed to reveal undisclosed material information concerning acquired operations; and other risks and uncertainties described more fully in the Company's filings with the Securities and Exchange Commission.