NN Inc. continues to build up its industrial portfolio, entering into a definitive agreement to buy Precision Engineered Products Holdings Inc., of Attleboro, Mass., for $615 million in cash.
Johnson City, Tenn.-based NN said in its slide presentation announcing the deal that this is a strategic move to position the company closer to its goal of $1 billion in annual sales. It expects the combined companies to post $910 million in 2015 sales.
The publicly traded industrial company expects the deal to be immediately accretive to earnings and said the transaction will close by the end of October.
P.E.P. serves the medical, electrical, transportation and aerospace markets. Its net sales for the last 12 months, ending June 30, were $245.3 million.
“The addition of the P.E.P. business into our portfolio is a transformative step in creating a diversified industrial company that serves a variety of end markets and delivers consistent economic results through the economic cycle. P.E.P. strengthens our technical capabilities and provides us with additional dynamic platforms to support outgrowth of our end markets,” said Richard Holder president and CEO of NN, in a statement.
P.E.P. is a vertically integrated company, providing everything from injection molding to plastic machining and polishing, assemblies, precision stamping, electrical contacts, plated parts, surface finishing, and clad and specialty metals.
This marks NN's second acquisition of a company that makes plastics components in a matter of months. NN purchased Caprock Manufacturing Inc. and Caprock Enclosures LLC, both of Lubbock, Texas, on May 29.
NN does high precision metal bearing components, industrial plastic and rubber products, and precision metal components.