Johnson City, Tennessee – NN Inc. has completed its acquisition of Autocam Corp. for approximately $245.2 million in cash, $29.8 million in assumed debt, and $25 million in stock.
Autocam engineers, manufactures, and assembles highly complex components for fuel systems, engines and transmission, power steering, and electric motors.
In connection with the closing, NN obtained a new $350 million term loan facility underwritten by Bank of America, N.A. Merrill Lynch, Pierce, Fenner & Smith Incorporated, and KeyBank National Association and a $100 million asset backed revolver that was underwritten by KeyBank National Association and Bank of America, N.A. The proceeds will be used to pay the cash portion of the purchase price, to repay existing indebtedness and to pay fees and expenses in connection with the transaction.
Additionally, NN announced that John Kennedy, founder and former CEO of Autocam has been appointed to serve on NN’s board of directors.
With the completion of the transaction, NN becomes one of the top three global manufacturers of metal bearing and precision metal components with expected pro forma 2014 sales of more than $675 million, more than 4,200 employees and 25 operations in the United States, Western Europe, Eastern Europe, South America, and China.
Autocam will join NN’s Precision Metal Components Segment forming a new, dedicated Autocam Precision Metal Components segment. The Autocam brand name will continue to be used to leverage its strength and reputation in the marketplace.
Richard Holder, president and CEO of NN Inc., said, “Although this transaction is transformative to NN, it does not signal the end of our ongoing strategy to aggressively grow our business through strategic, profitable acquisitions that provide complementary resources and lines of business.”
Source: NN Inc.