JOHNSON CITY, Tenn.,
Sept. 2, 2014 /PRNewswire/ --
- Closes $350 million term loan
facility underwritten by Bank of America, N.A. Merrill Lynch,
Pierce, Fenner & Smith Incorporated and KeyBank National
Association and a $100 million asset
backed revolver underwritten by KeyBank National Association and
Bank of America, N.A.
- Becomes a top three global manufacturer of metal bearing and
precision metal components
- John Kennedy Appointed to NN, Inc.'s Board of
Directors
NN, Inc. (Nasdaq: NNBR) today announced that it has completed
its previously announced acquisition of Autocam Corporation for
approximately $245.2 million in cash,
$29.8 million in assumed debt and
$25 million in stock. Autocam
is a global leader in the engineering, manufacture and assembly of
highly complex, system critical components for fuel systems,
engines and transmission, power steering and electric motors.
NN was advised on the transaction by KeyBanc Capital Markets,
Inc.
In connection with the closing, NN obtained a new $350 million term loan facility underwritten by
Bank of America, N.A. Merrill Lynch, Pierce, Fenner & Smith
Incorporated and KeyBank National Association and a $100 million asset backed revolver that was
underwritten by KeyBank National Association and Bank of America,
N.A. The proceeds will be used to pay the cash portion of the
purchase price, to repay existing indebtedness and to pay fees and
expenses in connection with the transaction.
Additionally, NN announced that John
Kennedy, founder and former Chief Executive Officer of
Autocam has been appointed to serve on NN's board of directors.
With the completion of the transaction, NN becomes one of the
top three global manufacturers of metal bearing and precision metal
components with expected pro forma 2014 sales of over $675 million, more than 4,200 employees and 25
operations in the United States,
Western Europe, Eastern Europe, South America and
China. The anticipated 2014 sales do not include
approximately $42 million in expected
sales from a 49% Chinese joint venture accounted for under the
equity method. Autocam will join NN's Precision Metal
Components Segment forming a new, dedicated Autocam Precision Metal
Components segment. The Autocam brand name will continue to
be used to leverage its strength and reputation in the
marketplace.
Richard Holder, President and
Chief Executive Officer of NN, Inc. commented, "The sum of the
combined strength of NN and Autocam creates a division that is much
stronger than the individual parts and provides us with expanded
opportunities to drive future growth and bring increased value to
our shareholders. We will move forward with a clear
focus to achieve a seamless integration that maximizes the many
synergies that we have identified between these two great
companies."
Mr. Holder continued, "Although this transaction is
transformative to NN, it does not signal the end of our ongoing
strategy to aggressively grow our business through strategic,
profitable acquisitions that provide complementary resources and
lines of business."
NN, Inc. manufactures and supplies high precision metal bearing
components, industrial plastic and rubber products and precision
metal components to a variety of markets on a global basis.
Headquartered in Johnson City,
Tennessee, NN has 25 manufacturing plants in the United States, Western Europe, Eastern Europe, South
America and China.
Except for specific historical information, many of the
matters discussed in this press release may express or imply
projections of revenues or expenditures, statements of plans and
objectives or future operations or statements of future economic
performance. These, and similar statements, are forward-looking
statements concerning matters that involve risks, uncertainties and
other factors which may cause the actual performance of NN, Inc.
and its subsidiaries to differ materially from those expressed or
implied by this discussion. All forward-looking information
is provided by the Company pursuant to the safe harbor established
under the Private Securities Litigation Reform Act of 1995 and
should be evaluated in the context of these factors.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "assumptions", "target",
"guidance", "outlook", "plans", "projection", "may", "will",
"would", "expect", "intend", "estimate", "anticipate", "believe",
"potential" or "continue" (or the negative or other derivatives of
each of these terms) or similar terminology. Factors which could
materially affect actual results include, but are not limited to:
general economic conditions and economic conditions in the
industrial sector, inventory levels, regulatory compliance costs
and the Company's ability to manage these costs, start-up costs for
new operations, debt reduction, competitive influences, risks that
current customers will commence or increase captive production,
risks of capacity underutilization, quality issues, availability
and price of raw materials, currency and other risks associated
with international trade, the Company's dependence on certain major
customers, and the successful implementation of the
global growth plan including development of new
products. Similarly, statements made herein and
elsewhere regarding pending or completed acquisitions are also
forward-looking statements, including statements relating to the
anticipated closing date of an acquisition, the Company's ability
to obtain required regulatory approvals or satisfy closing
conditions, the costs of an acquisition and the Company's source(s)
of financing, the future performance and prospects of an acquired
business, the expected benefits of an acquisition on the Company's
future business and operations and the ability of the Company to
successfully integrate recently acquired businesses.
For additional information concerning such risk factors and
cautionary statements, please see the section titled "Risk Factors"
in the Company's periodic reports filed with the Securities and
Exchange Commission, including, but not limited to, the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2013. Except as required by
law, we undertake no obligation to update or revise any
forward-looking statements we make in our press releases, whether
as a result of new information, future events or otherwise.
SOURCE NN, Inc.