Lincoln Electric Holdings, Inc. has signed a definitive agreement to acquire Mezhgosmetiz-Mtsensk OAO (MGM), a privately-held welding wire manufacturer based in the Orel region of Russia.
The acquisition will provide Lincoln its first manufacturing operation in Russia as well as established distribution channels to serve the growing Russian and Commonwealth of Independent States (CIS) welding markets. Terms were not disclosed. The acquisition has been approved by the Russian Federation regulatory agencies and is expected to close tomorrow.
MGM has annual sales of approximately $30 million and employs over 200 people. "Lincoln already has solid brand recognition and market presence in Russia through imports of our high technology welding products for the energy and infrastructure segments," said John M. Stropki, chairman and chief executive officer.
"MGM, with its broad line of premium quality solid wire and stick electrode product offerings, combined with an extensive distribution network, will complement our imported products offering and significantly expand our commercial presence in the region.
"We have been impressed with the professionalism and skill of the company's people, as well as its strong R&D capability, and we believe MGM will be an excellent contributor to Lincoln's strategic growth."
Lincoln Electric is a leader in the design, development and manufacture of arc welding products, robotic arc-welding systems, plasma and oxyfuel cutting equipment, with a leading global position in the brazing and soldering alloys market.
Headquartered in Cleveland, Ohio, Lincoln has 37 manufacturing locations, including operations and joint ventures in 18 countries and a worldwide network of distributors and sales offices covering more than 160 countries.
