SMT Acquires Advanced Tubing Technologies, Inc.
June 30, 2006
Filed under Uncategorized
Samuel Manu-Tech Inc. (SMT) has acquired Advanced Tubing Technologies, Inc., a manufacturer of tight-tolerance structural tubing components and assemblies for the powersports and transportation industries in North America.
SMT is an industrial products and technology company producing a wide range of steel, plastic and related industrial products and services from locations in Canada and the United States.
Founded in 1997, Advanced Tubing had sales of approximately $21 million in 2005. Employing approximately 200 people operating in a 120,000 square foot facility in Statesville, N.C., the company uses pre-cut lengths of steel tubing and precision stampings with robotic work cells to create bolt-on parts and assemblies.
The transaction is structured as a 100 percent stock purchase, or $18.2 million plus an earn-out payment, subject to certain adjustments for working capital items. Management expects the acquisition to be accretive to earnings, before any operating synergies. Funding for the acquisition came from SMT's existing revolving credit facilities.
SMT officials said the “strategic acquisition” expands the company's existing capabilities in robotic welding and steel tube bending. SMT's Chief Executive Officer, Mark Samuel, said Advanced Tubing "has demonstrated innovation and expertise in value-added manufacturing and we expect them to thrive within our organization.”