3/8/2013 | 2 MINUTE READ

Fives Has Entered Definitive Agreement to Acquire MAG Americas

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Fives to reinforce its activity in machine tools with the acquisition of MAG Americas, a global supplier of high-performance capital equipment.


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Fives has entered into a definitive agreement to acquire MAG
Americas, a global supplier of high-performance machining solutions and composite
processing. A subsidiary of the MAG Group, MAG Americas enjoys a unique position in the
high-end segment of large and complex parts machining solutions and composite
processing, where it holds a worldwide leading position. Thanks to its high innovation track
record, it has developed strong relationships within the key and demanding industries it
serves, such as aerospace, oil & gas, mining, agriculture and off-road vehicles. In 2012, it
displayed a turnover of c. $400m, of which 67% was generated in North America.

This acquisition encompasses several business units: Giddings & Lewis, Cincinnati and
Forest-Liné, specializing in composite processing and large metal cutting machines, as well
as a unit dedicated to aftermarket services. It employs c.1,000 people, located in the United
States, France, Canada, China and South Korea. It also comprises a portfolio of more than
100 patents.

The end-markets addressed by MAG Americas offer strong potential for development,
notably through an increasing use of composite materials. Moreover, the North American
domestic industrial markets, to which it is most exposed, benefit from strong market
fundamentals. After completion of the transaction, Fives, thus becoming a significant global
player in the machine tool industry – will strongly benefit from the dynamism of the American
aerospace and oil & gas sectors, which create opportunities for the machining business.

Frédéric Sanchez, Chairman of the Executive Board of Fives, said:
“This acquisition marks another step forward in the development of our Group, which will add
to its portfolio the innovative know-how of more than 1,000 employees located in 5 different
countries. As a global supplier of superior and innovative technologies and products, MAG
Americas perfectly matches Fives’ strategy to focus on high value-adding industries, such as
aerospace. Through this combination, we are also reinforcing our exposure to a wellpositioned
North American industry and opening to new opportunities for development in
emerging countries.”

This acquisition is being carried out with the full support of AXA Private Equity, Fives’ main
stakeholder, which contributes to this new step in Fives’ development.
Completion of the transaction is subject to customary closing conditions and regulatory

About Fives
Fives is an industrial engineering group born 200 years ago. It designs and manufactures process
equipment, production lines and turnkey plants for the world’s largest industrial companies in the
aluminum, steel, glass, automotive, logistics, cement and energy sectors, both in emerging and
developed countries.

In all these areas, Fives designs breakthrough innovations that anticipate and respond to the needs of
its customers in terms of profitability, safety and environmental responsibility.
In 2012, Fives achieved sales of €1.5 billion and employed more than 6,500 people in about 30