Fives to take the leadership in tube and pipe mills through the acquisition of OTO Mills, subsidiary of the Marcegaglia Group
Paris, July 4, 2013 - Fives has signed an agreement to acquire OTO Mills ("OTO"), an Italy-based supplier of high performance mills for the production of welded tubes and automation systems for the steel industry.
Founded in 1980, OTO's main activity is to design manufacture and install complete systems for the production of welded tubes and profiles. Its focus on key technological innovations makes it today's worldwide leader for ERW mills and allows OTO to supply a very wide range for the production of tubes from diameter ¼" to 24" that are used for a large variety of industrial applications, incl. Oil & Gas. OTO also brings along a significant automation expertise offering superior reliability and productivity.
Its industrial expertise has enabled OTO to develop a large and loyal customer base all over the world: today, about 700 plants in 70 countries are equipped with OTO solutions. In 2013, OTO will generate a turnover of c. €90m, half of which in North & South America. In its three modern facilities in Northern Italy, OTO employs a workforce of c. 250 people with high engineering and design skills.
The acquisition complements Fives' current offer in tubes and pipes processing lines supplied by Fives Bronx under the brand names of Bronx/Taylor-Wilson (finishing solutions for a wide range of seamless and welded tube mills) and Abbey (welded tube mills with an expertise primarily directed towards large diameter mills). Fives will also benefit from OTO's automation expertise, which will be a strong asset for Fives' other activities in steel.
Frédéric Sanchez, Chairman of the Executive Board of Fives, commented: "OTO Mills will bring a unique expertise as well as best-in-class technologies that will significantly enhance our current activity in the supply of pipe and tube mills. Its superior geographical outreach will also open new commercial horizons to our business."
Antonio Marcegaglia, CEO of the Marcegaglia Group, commented: "I am sure that OTO Mills, after so many years of success and achievements, from scratch to worldwide leadership, as part of a large industrial engineering group will find new growth opportunities through even larger synergies, while preserving its unique identity."
The acquisition is expected to close shortly, upon applicable regulatory approvals.
Fives is an industrial engineering group created 200 years ago. Fives 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 countries.
Tel.: +33 (0)1 45 23 76 21