Remy Adds Ohio Company, Announces Annual Profit Dip
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPendleton-based Remy International Inc. (Nasdaq: REMY) has announced the acquisition of Maval Manufacturing Inc. in Ohio. The announcement comes as the company reports full-year net income of $6.1 million, compared to $15.8 million in 2013. February 19, 2015
News Release
PENDLETON, Ind. – Remy International, Inc. (NASDAQ: REMY), announced today that it has entered into a definitive agreement to acquire substantially all assets of Maval Manufacturing, Inc. (“Maval”), a Twinsburg, Ohio manufacturer, remanufacturer, and distributor of steering systems, components, and specialty products to the automotive service, original equipment power sports, and off-road specialty vehicle markets.
The transaction is subject to customary closing conditions and the parties expect to close the transaction in the first quarter of 2015.
“We are continuing to expand our portfolio beyond our core rotating electrics products into high-quality multilines with growth potential,” said Remy President and Chief Executive Officer, Jay Pittas. “Maval is a perfect fit for us: a well-managed, resourceful, profitable company with quality products that can stand on its own. We can help them grow and increase their distribution.”
Maval Manufacturing was the first independent remanufacturer to achieve a QS 9000 ranking for their steering products and they are a global leader in off-road and classic car steering systems. Their quality, management talent, and position in their markets made the company attractive to Remy, according to Pittas. Maval will retain their brand identities for their core products as well as their Unisteer and Wicked Bilt lines.
“This is the right strategic option for us and we are all excited to partner with Remy,” commented John Dougherty, Jon Statler, and Dale Lumby, the founders of Maval. “We want to continue to build on our organic growth and Remy gives us the capital base and the resources to further expand our existing platform. Remy is a respected global organization with strong engineering talent, exceptional management, outstanding supply chain, and award-winning customer responsiveness.”
“Maval is a strong company with great people,” continued Pittas. “We're proud they are joining us. We are committed to leveraging our resources and experience to help them achieve their goals.”
Maval was advised on the transaction by the investment-banking firm of BellMark Partners LLC and received legal advice from the law firm of Brouse McDowell.
About Remy International
Founded by the Remy Brothers in 1896, Remy International, Inc. is a leading global manufacturer and remanufacturer of alternators, starter motors, electric traction motors, and multiline products. Headquartered in Pendleton, IN, with global operations across five continents and 10 countries, Remy International markets products under the Delco Remy, Remy, World Wide Automotive and USA Industries brands. Known for innovation, efficiency, quality, and best-in-class customer service and support, Remy International's products are integrated by leading industrial, specialty, automotive and heavy-duty OEMs, and aftermarket providers worldwide. We Start the World & Keep It RunningTM. www.remyinc.com
About Maval Manufacturing
Founded in 1987 by corporate refugees who felt there must be a better way to remanufacture import power steering gears and pumps, Maval has grown to become one of the nation's foremost hydraulic remanufacturers as well as a worldwide leader in the production of off-road steering systems. Maval's unsurpassed quality and production/design flexibility has made it the choice of OEM's worldwide as a source of both remanufactured and new steering systems. http://www.mavalgear.com.
Source: Remy International Inc.
February 18, 2015
News Release
PENDLETON, Ind. – Remy International, Inc. (NASDAQ: REMY), a leading worldwide manufacturer, remanufacturer, and distributor of starter motors and alternators for light vehicle and commercial vehicle applications, multi-line products and hybrid electric motors, today announced its financial results for the fourth quarter and full year ended December 31, 2014.
Fourth Quarter Highlights
Net sales of $281.4 million for the fourth quarter of 2014, a decrease of 5% compared to $297.2 million for the fourth quarter of 2013.
Adjusted EBITDA of $33.8 million for the fourth quarter of 2014 compared to $41.7 million for the fourth quarter of 2013. The decrease of $7.9 million in Adjusted EBITDA is primarily driven by a $3.7 million negative impact of foreign currency in the fourth quarter of 2014 and integration costs associated with the USA Industries acquisition of $3.4 million.
Full Year Highlights
Net sales of $1,182.3 million for the year ended December 31, 2014, an increase of 4% compared to $1,140.2 million for the year ended December 31, 2013.
Our global OE backlog for 2017 increased a net $243 million in 2014 with new program awards from several global customers. This represents a 43% increase in OE sales over 2013 results.
Adjusted EBITDA of $139.4 million for the year ended December 31, 2014 compared to $144.1 million for the year ended December 31, 2013. The decrease of $4.7 million in Adjusted EBITDA is primarily driven by a negative $12.9 million foreign currency impact. Excluding the currency impact, Adjusted EBITDA increased 5.7% over prior year, and Adjusted EBITDA Margin improved to 12.9% in 2014 from 12.6% in 2013.
The previously announced transactions with Fidelity National Financial, Inc. (“FNF”)(the “Transaction”), were completed, which resulted in the indirect distribution of all the shares held by FNF to the holders of its Fidelity National Financial Ventures (“FNFV”) tracking stock, and the acquisition by Remy of a small company, Fidelity National Technology Imaging, LLC (“Imaging”). The Transaction was approved by Remy stockholders at a Special Meeting held on December 31, 2014. The transaction costs and purchase accounting adjustments are included in the reported results, impacting operating income by $7.9 million in the fourth quarter and $35.8 million for the full year.
“We reported improved sales despite weaker economic conditions internationally,” said President and CEO Jay Pittas. “Revenues grew 4 percent with improved demand for North American on-highway trucks and passenger vehicle aftermarket parts. We also delivered strong growth in China driven by new products and programs. We continue to invest for future growth, reflecting our commitment to technology and product leadership, and supported a 43 percent increase in our OE business backlog.”
Pittas continued, “We are committed to improving the quality of our products and service for our customers, closely managing costs and further improving our financial performance in 2015. The company is passionate about building shareholder value by profitably growing the business organically, funding strategic acquisitions and returning cash to shareholders via dividends and share repurchase programs.”
The company continues to pay a quarterly dividend of $0.10 per share and recently announced a $100 million stock repurchase program targeted for completion over the next three years.
About Remy International, Inc.
Founded by the Remy Brothers in 1896, Remy International, Inc. is a leading global manufacturer and remanufacturer of alternators, starter motors and electric traction motors. Headquartered in Pendleton, IN, with global operations across five continents and 10 countries, Remy International markets products under the Delco Remy, Remy, World Wide Automotive and USA Industries brands. Known for innovation, efficiency, quality, and best-in-class customer service and support, Remy International's products are integrated by leading industrial, specialty, automotive and heavy-duty OEMs, and aftermarket providers worldwide. We Start the World & Keep It Running.
Source: Remy Internatio