Live Ventures Acquires Precision Metal Works, Adding $75 Million Annual Revenue Stream
July 24 2023 - 8:30AM
Live Ventures Incorporated (Nasdaq: LIVE), a diversified
holding company (“Live Ventures” or “Company”), announced today
that it has acquired Precision Metal Works, Inc. (“PMW”), a
Kentucky-based Metal Stamping and Value-Added Manufacturing
Company. PMW was acquired for a total consideration of
approximately $28 million, comprised of $25 million cash, with
additional consideration of up to $3 million paid in the form of an
earn-out. The acquisition involved no issuance of stock of Live
Ventures. The Company believes the acquisition will be immediately
accretive to earnings.
Founded nearly 76 years ago in 1947, Louisville, Kentucky-based
Precision Metal Works manufactures and supplies highly engineered
parts and components across 400,000 square feet of manufacturing
space in Kentucky. It offers world-class metal forming, assembly,
and finishing solutions across diverse industries, including
appliance, automotive, hardware, electrical, electronic, medical
products, and devices.
“PMW aligns wonderfully with our existing steel manufacturing
operations and our long-term ‘buy-build-hold’ strategy. We expect
not only increased demand due to manufacturers onshoring operations
to the United States, but also synergies across our steel segment.
We welcome all 250 employees to the Live Ventures family,” said Jon
Isaac, President and CEO of Live Ventures.
“We are a high-tech manufacturer that firmly believes America
makes the best products in the world. Our metal forming
technologies and cutting-edge processes are second to none, and we
look forward to becoming part of the Live Ventures team,” said
Richard Stanley, PMW’s President and CEO. “PMW is strategically
positioned for ongoing expansion, thanks to substantial investments
in top-of-the-line equipment, exceptional management, and strong
customer and supplier relationships. By joining forces with Live
Ventures, we gain access to growth capital that will propel our
business forward in the rapidly growing electric vehicle market, as
well as our other target markets. Together, we are poised for even
greater achievements.”
“We will adopt the same values at PMW as we have in our other
steel subsidiaries. We pride ourselves on being an excellent
partner for our customers and suppliers, as well as an excellent
place to work for our employees. We are committed to exceeding the
expectations of our customers with quality products that are on
time every time,” said Thomas R. Sedlak, CEO of Precision Marshall,
a Live Ventures company.
As part of the acquisition, Live Ventures will retain PMW’s
existing management team and all its employees.Invision Capital
Advisors, LLC and Focus Capital Advisors, Inc. acted as the
financial advisers to PMW.
Live Ventures IncorporatedLive Ventures is a
diversified holding company with a strategic focus on
value-oriented acquisitions of domestic middle-market companies.
Live Ventures’ acquisition strategy is sector agnostic and focuses
on well-run, closely held businesses with a demonstrated track
record of earnings growth and cash flow generation. The Company
looks for opportunities to partner with management teams of its
acquired businesses to build increased stockholder value through a
disciplined buy-build-hold long-term focused strategy. Live
Ventures was founded in 1968. In late 2011 Jon Isaac, CEO and
strategic investor, joined the Board of Directors and later
refocused it into a diversified holding company. The Company’s
current portfolio of diversified operating subsidiaries includes
companies in the textile, flooring, tools, steel, and entertainment
industries.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act and Section 21E of
the Securities Exchange Act of 1934, each as amended, that are
intended to be covered by the “safe harbor” created by those
sections. In accordance with such safe harbor provisions,
statements contained herein that look forward in time that include
everything other than historical information, involve risks and
uncertainties that may affect the Company’s actual results,
including statements relating to accretion to earnings, expansion
of products and services, alignment with existing operations and
our ‘buy-build-hold’ strategy, demand for products and services,
access to growth capital, and increase in the Company’s total
revenues. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," and similar
statements. Live Ventures may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission on Forms 10-K and 10-Q, Current
Reports on Form 8-K, in its annual report to stockholders, in press
releases and other written materials, and in oral statements made
by its officers, directors or employees to third parties. There can
be no assurance that such statements will prove to be accurate, and
there are a number of important factors that could cause actual
results to differ materially from those expressed in any
forward-looking statements made by the Company, including, but not
limited to, plans and objectives of management for future
operations or products, the market acceptance or future success of
our products, and our future financial performance. The Company
cautions that these forward-looking statements are further
qualified by other factors including, but not limited to, those set
forth in the Company’s Annual Report on Form 10-K for the fiscal
year ended September 30, 2022 (available at http://www.sec.gov).
Live Ventures undertakes no obligation to publicly update or revise
any statements in this release, whether as a result of new
information, future events, or otherwise.
Contact:Live Ventures IncorporatedGreg Powell,
Director of Investor
Relations725.500.5597gpowell@liveventures.comwww.liveventures.com
Source: Live Ventures Incorporated
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