Consistent with Allied’s strategy to provide higher level system solutions, the addition of the Maval OE product line enables Allied to provide a fully integrated steering system solution to its customers.
AMHERST, N.Y.--(BUSINESS WIRE)--Allied Motion Technologies Inc. (NASDAQ: AMOT) ("Company"), a designer and manufacturer that sells precision motion control products and solutions to the global market, announced today that it has purchased substantially all of the operating assets associated with the original equipment ("OE") steering business of Maval Industries, LLC ("Maval"). Allied Motion focuses on designing and selling motion components and systems to original equipment manufacturers and end users through direct and distribution sales channels. Consistent with Allied's strategy to provide higher level system solutions, the addition of the Maval OE product line enables Allied to provide a fully integrated steering system solution to its customers.
Founded in 1987 and located in Twinsburg, Ohio, Maval is a leading provider of both new and remanufactured steering system components for the automotive, off-road, performance and specialty vehicle markets. Torque Capital Group acquired Maval in October 2016 and consistent with its strategy to focus on aftermarket and re-man product manufacturing and sales, agreed to sell the OE product line to Allied Motion.
"We believe this acquisition is an excellent strategic fit with Allied Motion as it adds complementary technology, provides deeper customer penetration and improves our ability to create more value for our customers," commented Dick Warzala, Chairman and CEO of Allied Motion. "We are very familiar with Maval, having already worked together on the development of new design technologies that leverage the Maval mechanical products and the Allied electronics, motor and gearing technologies to create additional customer value by providing an integrated steering solution. The combination of the capabilities of both companies, now under the Allied One-Team umbrella, will provide our customers with a streamlined supply base and single point of contact for all their steering needs. We welcome the Maval employees that are joining the Allied Motion Team and we look forward to an exciting future together."
Given the costs associated with working through a shared services agreement and completing the production carve-out/separation of the businesses, the acquisition is expected to be neutral to slightly accretive to earnings for Allied in 2018. Once the carve-out is complete, the business will be located entirely within its own dedicated facility in Twinsburg, OH.
About Allied Motion Technologies Inc.
Allied Motion (NASDAQ: AMOT) designs, manufactures and sells precision and specialty motion control components and systems used in a broad range of industries within our major served markets, which include Vehicle, Medical, Aerospace & Defense, and Industrial/Electronics. The Company is headquartered in Amherst, NY, has global operations and sells into markets across the United States, Canada, South America, Europe and Asia.
Allied Motion is focused on motion control applications and is known worldwide for its expertise in electro-magnetic, mechanical and electronic motion technology. Its products include brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gear motors, gearing, modular digital servo drives, motion controllers, incremental and absolute optical encoders, and other associated motion control-related products.
The Company's growth strategy is focused on becoming the motion solution leader in its selected target markets by leveraging its "technology/know how" to develop integrated precision motion solutions that utilize multiple Allied Motion technologies to "change the game" and create higher value solutions for its customers. The Company routinely posts news and other important information on its website at http://www.alliedmotion.com/.