Worthington Industries Acquires Angus Industries For $180 Million Cash
Worthington Industries has announced it acquired Angus Industries for $180 million in cash. Angus, based in Watertown, S.D. reported over $200 million in revenue in 2011 with approximately 1,250 non-union employees. The company “designs and manufactures high-quality, custom-engineered open and enclosed cabs and operator stations for a wide range of heavy mobile equipment in several end-markets, including agriculture, construction and mining”, according to Worthington’s press release. Angus has four facilities including its South Dakota headquarters, Northwood, Iowa, Greeneville, Tenn. and Florence, S.C. facilities.
According to an SMU source, Angus Industries is the largest manufacturer of outsourced mobile equipment cabs in North America and produces roughly 10-12% of all cabs used in the manufacture of mobile equipment in North America, and commands around one-third of the total market for outsourced cab production. Angus has long-standing relationships with Caterpillar, John Deere and Agco, all of which are major machinery makers. The analyst sees a strong, steady growth outlook for Angus, which will help Worthington’s portfolio achieve better earnings.
“Angus is a great addition, providing a new manufacturing segment for our Company,” said John McConnell, Chairman and CEO. “We are also pleased that we share some significant customers, while providing different products and services. The Angus end-markets will increase our presence in the construction, agriculture and mining industries. We see opportunities to invest in the business by adding domestic capacity, expanding some capabilities, as well as targeting international expansion to support customer growth.”
Angus will remain a stand-alone business segment, named Engineered Cabs.
Source: Worthington Industries