Fives, an industrial engineering group created 200 years ago, has signed an agreement to acquire OTO Mills, an Italy based supplier of high performance mills for the production of welded tubes and automation systems for the steel industry.
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. EUR 90 million, 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 and Abbey. Fives will also benefit from OTO’s automation expertise, which will be a strong asset for Fives’ other activities in steel.
Mr Frederic Sanchez chairman of the Executive Board of Fives said that “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.”
Mr Antonio Marcegaglia CEO of the Marcegaglia Group said that “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.”
Meanwhile, the acquisition is expected to close shortly, upon applicable regulatory approvals.