NN, Inc. (NASDAQ:NNBR) Reaches Deal To Acquire Autocam In Cash-And-Stock Transaction

NN, Inc. (NASDAQ:NNBR) has entered into a definitive agreement to acquire Autocam Corporation for $244.5 million in cash, $25.0 million in stock and the assumption of $30.5 million in debt. The transaction is expected to close in Q3 and to be immediately accretive to earnings.

Autocam is a Grand Rapids, Michigan-based company specializing in the engineering, manufacture and assembly of components for fuel systems, engines and transmission, power steering and electric motors. With expected 2014 sales of approximately $250 million, Autocam employs over 2,100 employees and has operations in 15 facilities in the U.S., Europe, South America and Asia.

With the close of the acquisition, the Autocam team will join NN’s Precision Metal Components Segment forming a new, dedicated Autocam products segment. As a result of the transaction, John Kennedy, Founder and CEO of Autocam will become a significant shareholder of NN. The NN Board of Directors also intends to consider Kennedy for a seat on its Board. The transaction does not include the Autocam Medical business.

“This acquisition is the next step in our ongoing strategy to aggressively grow our business through strategic, profitable acquisitions that provide complementary resources and lines of business,” said Richard Holder, President and Chief Executive Officer of NN. “The addition of Autocam to the NN family is a transformative event, creating a much stronger Company with greater opportunity to drive future growth and bring sustainable value to our shareholders.”