Press Release Source: MISCOR Group, Ltd.
MISCOR Group Acquires American Motive Power, Acquisition Expands Expertise in Locomotive and Diesel Engine Repair, Reach Grows to East Coast
Thursday January 17, 8:00 am ET
SOUTH BEND, Ind., Jan. 17 /PRNewswire-FirstCall/ -- Industrial services provider MISCOR Group, Ltd. (OTC Bulletin Board: MIGL - News) today announced it has acquired privately held American Motive Power, Inc. (AMP), a provider of a wide range of services to the railroad industry. The acquisition expands MISCOR's locomotive expertise in its Repair, Remanufacturing and Manufacturing (RRM) Division.
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MISCOR said the acquisition of Dansville, NY-based AMP supports the Company's desire to grow its service capabilities in the railroad industry by expanding its repair and remanufacturing of locomotives and diesel engines for locomotives. The AMP operation and its experienced team of technicians are housed in approximately 250,000-square-feet of space, large enough to simultaneously service 20 locomotives.
The new operation and experienced employees are expected to bolster MISCOR's already industry-recognized expertise in the reconditioning, remanufacturing and manufacturing of power assemblies for 710, 645 and 547 EMD diesel engines. In addition, the vertical integration of AMP is an example of MISCOR's strategic growth strategy to add value to its roster of blue clip customers, as MISCOR's subsidiaries Magnetech Industrial Services and HK Engine Components are currently AMP's largest suppliers.
"The acquisition of American Motive Power is a great way for us to kick- off 2008 and continue building on the momentum we established in the second half of 2007," said John Martell, President and CEO of MISCOR. "By expanding our presence along the East Coast we have the opportunity to add new customers and cross-sell our services in the high density transportation centers in the Northeast."
AMP Founder and President Larry Mehlenbacher said: "I am pleased to find a company of MISCOR's caliber that is dedicated to providing the same high level of service and responsiveness that has always distinguished AMP from the competition. I look forward to AMP becoming part of the MISCOR family of companies and watching the company grow under their national industrial- services model."
As part of the acquisition, MISCOR said that Pierre Desrosiers will become Vice President of Operations for the new subsidiary. A veteran of the industry, Desrosiers has extensive locomotive shop maintenance and management experience, including serving as Director-Locomotive Division for Alstom Transport Canada. Joseph Fearon, with more than 40 years of railroad industry experience, will become Vice President of Business Development and Engineering.
Fearon founded Morrison Knudsen Corp-Rail Systems Group, and served as its President. Gary Walsh will become Vice President of Sales and Marketing. Walsh brings an extensive background in sales and marketing management in the locomotive industry with both General Electric and Alstom. MISCOR Executive Vice President and COO Richard Tamborski will become President of American Motive Power, Inc.
In addition to the acquisition, MISCOR also announced that it has closed a new $15 million financing package with Wells Fargo that will be used for this acquisition and working capital requirements.
A 1-for-25 reverse stock split of MISCOR's common stock which was previously announced on Dec. 3, 2007 was declared effective on Jan. 14, 2008. As a result of the reverse split, the Company's ticker symbol was change to MIGL.OB.
Financial terms of the AMP acquisition and Wells Fargo financing package will be available on separate Form 8-Ks to be filed with the Securities and Exchange Commission (SEC) at www.sec.gov.
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