Biesse S.p.A Acquires AGM Assets

PESARO, Italy – Biesse S.p.A. announced on Feb. 19 that it plans to acquire the distribution and service branch of AGM Glass Machinery Inc., a major stone-machinery distributor based in Pineville, N.C.
Biesse signed a preliminary agreement for the acquisition through its subsidiary, Biesse America Inc. of Charlotte, N.C. The agreement is expected to be concluded early next month.
The branch of the business involved in the agreement covers approximately 85 percent of the original company, based on revenue. It will be taken over by a new company, Intermac Inc., which is 100-percent controlled by Biesse America Inc.
Terms of the deal are cash, with the exception of certain items on the asset side subject to potential settlement.
Frank Micalizzi, one of the founders of AGM, along with his brothers Mike and Matthew, will be working alongside Biesse America Chairman and CEO Federico Broccoli, to implement the new development plan.
The acquisition is part of the project for growth, encompassing external lines, that Biesse has outlined in its three-year industrial plan.
AGM, founded in 1982, sells machines and tools used to process flat sheets of glass. In the past ten years, it has branched out into the rapidly expanding sector of natural and synthetic stone-working machinery, where it is a recognized leader in the U.S.market.
Biesse S.p.A. is listed in the STAR segment of the Italian Stock Exchange., and is a manufacturer of production equipment for the wood and stone industries, including Intermac CNC machines.
AGM ended its 2006 fiscal year at the end of last May, with revenues of $31.3 million and an EBIT margin of 5.5 percent.
The branch of the business involved in the agreement is valued at three times the forecast EBIT value for 2007 (which is expected to increase slightly compared to the previous year), to which will be added the difference between the assets and liabilities registered for the branch of business acquired.