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Allied Motion Technologies Announces Completion of Premotec Acquisition
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DENVER, Aug 23, 2004 (BUSINESS WIRE) -- Allied Motion Technologies Inc. (NASDAQ: AMOT) announced today that it has completed the previously announced acquisition of Precision Motor Technology B.V. (Premotec) located in Dordrecht, the Netherlands. The purchase price is EUR 3.75 million (approximately U.S. $4.6 million) consisting of approximately $3.1 million of cash and 265,000 shares of common stock of Allied Motion. The cash consideration is being funded by a term loan and a line of credit from a Netherlands bank. Premotec has been manufacturing small precision electric motors for more than thirty years. The products are manufactured at their facility in the Netherlands and at a contract manufacturing facility in Eastern Europe and are sold to OEM customers in Europe and the United States and through distributors to smaller OEM's in almost all countries of the EEC. The products are used in a wide variety of industrial, professional and medical applications. Premotec had revenues of approximately U.S. $10 million for 2003 and has total assets of approximately U.S. $3.5 million. During the last half of 2003 and continuing into 2004, Premotec has experienced an increase in revenue and profits over the prior year's results and has achieved U.S. $6 million in revenues for the six months ended June 30, 2004. "We are very excited about the addition of Premotec to Allied Motion," commented Richard Smith, Allied Motion's CEO. "Premotec aligns very well strategically with the existing Allied Motion businesses." Also commenting on the acquisition, Richard Warzala, President of Allied Motion, stated: "Premotec's European presence provides additional opportunities for the sale and support of all Allied Motion's products and our existing U.S. sales channels will provide additional opportunities for the sale of Premotec's products while increased purchasing volume provided by Premotec will enhance the Company's strategic sourcing opportunities. Allied's Systematic Tools will immediately be introduced at Premotec to ensure strategic alignment and improve operating efficiencies." Headquartered in Denver, Colorado, Allied Motion designs, manufactures and sells motion control products into applications that serve many industry sectors. Allied Motion is a leading supplier of precision and specialty motion control components and systems to a broad spectrum of customers throughout the world. The statements in this press release that relate to future plans, events or performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statements that may predict, forecast, indicate, or imply future results, performance, or achievements. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual results of Allied Motion Technologies Inc. and its subsidiaries (the "Company") to differ materially from the forward-looking statements. With respect to the acquisition of Premotec, risks and uncertainties may include difficulties retaining or servicing Premotec's customers; the increase that Premotec has experienced in its revenues and profits does not continue; it takes the Company longer than planned to integrate Premotec's products and customers into the Company's business model; Premotec's European presence does not provide additional opportunities for the sale and support of Allied Motion's products; the Company's existing U.S. channels do not provide additional sales of Premotec's products; and the implementation of Allied's Systematic Tools do not result in improved operating efficienies. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements as a prediction or indication of actual results. The Company has no obligation or intent to release publicly any revisions to any forward looking statements, whether as a result of new information, future events, or otherwise. SOURCE: Allied Motion Technologies Inc. Allied Motion Technologies Inc. Customize your Business Wire news & multimedia to match your needs. |
