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Michigan manufacturing company grows with acquisition

A Michigan company is close to finalizing the purchase of a business that makes shock and vibration control pads. The Michigan firm, based in Ann Arbor, expects to pay $54 million for the outstanding shares of the manufacturer. It will use part of its $250 million line of credit to finance the acquisition.

The company being acquired has a long history of business adding up to 94 years and had revenues of $27 million in 2011. The company will be run as its own entity, but the two businesses complement one another in terms of products and customers, leaders said.

The Michigan company designs and makes parts for a variety of markets including alternative energy, electronics, aerospace, defense and others. It has about 2,300 employees and reported sales last year in excess of $460 million.

The new acquisition makes shock control products such as mounts for industrial machinery, defense, aerospace, mining, construction and other markets. No changes to the management or operations of the newly acquired company are expected, and the deal should close by the time the quarter ends on June 30, officials said.

The newly acquired company will join the velocity control products division of the Ann Arbor company. Both sides used legal help in finishing the deal, as to be expected in a multimillion-dollar transaction. It is wise when selling or buying companies to employ consultants or attorneys who will make sure the transaction occurs without a hitch.

This is just the latest acquisition for the Ann Arbor company, which continues to grow. Last spring, it closed on the purchase of a company based in Germany that also fit the business model. That acquisition came in a deal estimated to be valued at $40 million.

Source: Crain's Detroit, "Kaydon to buy Fabreeka Group Holdings in Massachusetts for $54 million," Chad Halcom, May 30, 2012

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