Mayville Engineering Company Completes Acquisition of Mid-States Aluminum
05 July 2023 - 9:00PM
Business Wire
Mayville Engineering Company, Inc. (NYSE: MEC) (the “Company” or
“MEC”), a leading value-added provider of design, prototyping and
manufacturing solutions serving diverse end-markets, today
announced that it had completed the acquisition of privately held
Mid-States Aluminum (“MSA”) on July 1, 2023.
Wisconsin-based MSA is an industry-leading, vertically
integrated manufacturer of custom aluminum extrusions and
fabrications. MSA offers value-added services that include design,
engineering, extrusions, fabrication, anodizing and finishing,
assembly, and packaging. With MSA, MEC secures an attractive
entry-point within light-weight materials fabrication, while
providing significant new cross-selling opportunities with both new
and existing customers.
“This immediately accretive acquisition, excluding transaction
costs, accelerates our entry into high-value, light-weight
materials fabrication, consistent with the commercial growth
strategy outlined in our MBX value creation framework,” said Jag
Reddy, President and Chief Executive Officer. “With MSA, we’ve
joined forces with another talented team whose commitment to value
creation is closely aligned with our own, as demonstrated by their
consistent track record of innovation, performance excellence and
profitable growth. We look forward to a seamless integration
process, one guided by a collaborative focus on delivering
exceptional quality, service and unparalleled value to our combined
portfolio of world-class customers.”
As previously disclosed, for the full-year 2022, MSA recorded
total revenue and Adjusted EBITDA of approximately $86 million and
$16 million, respectively, resulting in an Adjusted EBITDA margin
of more than 18%. At closing, the transaction was immediately
accretive, excluding transaction costs, to MEC’s earnings per
share, Adjusted EBITDA and free cash flow. Based on current
expectations and market conditions, the Company expects that the
MSA acquisition will contribute between $30 to $35 million of net
sales and between $4 to $6 million in Adjusted EBITDA for the
fiscal year 2023.
ABOUT MAYVILLE ENGINEERING COMPANY
Founded in 1945, Mayville Engineering Company (MEC) is a leading
U.S.-based, vertically-integrated, value-added manufacturing
partner providing a full suite of manufacturing solutions from
concept to production, including design, prototyping and tooling,
fabrication, coating, assembly and aftermarket components. Our
customers operate in diverse end markets, including heavy- and
medium-duty commercial vehicles, construction & access
equipment, power sports, agriculture, military and other end
markets. Along with process engineering and development services,
MEC maintains an extensive manufacturing infrastructure with 20
facilities across seven states. These facilities make it possible
to offer conventional and CNC (computer numerical control)
stamping, shearing, fiber laser cutting, forming, drilling,
tapping, grinding, tube bending, machining, welding, assembly, and
logistic services. MEC also possesses a broad range of finishing
capabilities including shot blasting, e-coating, powder coating,
wet spray and military grade chemical agent resistant coating
(CARC) painting.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements that
reflect plans, estimates and beliefs. Such statements involve risk
and uncertainties. Actual results may differ materially from those
contemplated by these forward-looking statements as a result of
various factors. Important factors that could cause actual results
or events to differ materially from those expressed in
forward-looking statements include, but are not limited to:
macroeconomic conditions, including inflation, rising interest
rates and recessionary concerns, as well as ongoing supply chain
challenges, labor availability and cost pressures, and the COVID-19
pandemic, have had, and may continue to have, a negative impact on
our business, financial condition, cash flows and results of
operations (including future uncertain impacts); risks relating to
developments in the industries in which our customers operate;
risks related to scheduling production accurately and maximizing
efficiency; our ability to realize net sales represented by our
awarded business; failure to compete successfully in our markets;
our ability to maintain our manufacturing, engineering and
technological expertise; the loss of any of our large customers or
the loss of their respective market shares; risks related to
entering new markets; our ability to recruit and retain our key
executive officers, managers and trade-skilled personnel;
volatility in the prices or availability of raw materials critical
to our business; manufacturing risks, including delays and
technical problems, issues with third-party suppliers,
environmental risks and applicable statutory and regulatory
requirements; our ability to successfully identify or integrate
acquisitions; our ability to develop new and innovative processes
and gain customer acceptance of such processes; risks related to
our information technology systems and infrastructure; geopolitical
and economic developments, including foreign trade relations and
associated tariffs; results of legal disputes, including product
liability, intellectual property infringement and other claims;
risks associated with our capital-intensive industry; risks related
to our treatment as an S Corporation prior to the consummation of
our initial public offering; risks related to our employee stock
ownership plan’s treatment as a tax-qualified retirement plan; and
other factors described in “Risk Factors” in Part I, Item 1A of our
Annual Report on Form 10-K for the year ended December 31, 2022, as
such may be amended or supplemented in our subsequently filed
Quarterly Reports on Form 10-Q. This discussion should be read in
conjunction with our audited consolidated financial statements
included in the Company’s previously filed Annual Report on Form
10-K for the year ended December 31, 2022. We undertake no
obligation to update or revise any forward-looking statements after
the date on which any such statement is made, whether as a result
of new information, future events or otherwise, except as required
by federal securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20230705975777/en/
INVESTOR CONTACT Stefan Neely or Noel Ryan (615) 844-6248
MEC@val-adv.com
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