Fives to acquire OTO Mills

Fives has signed an agreement to acquire OTO Mills, an Italy-based supplier of high performance mills for the production of welded tubes and automation systems for the steel industry.

Founded in 1980, OTO designs, manufactures and installs complete systems for the production of welded tubes and profiles. It is a worldwide leader for ERW mills and supplies a wide range for the production of tubes that are used for a large variety of industrial applications including Oil and Gas. OTO also brings along a significant automation expertise offering superior reliability and productivity, and is expected to generate a turnover of EUR 90M in 2013, half of which is from North and South America.

The acquisition complements Fives’ current offer in tubes and pipes processing lines supplied by Fives Bronx under the brand names of Bronx/Taylor-Wilson and Abbey. Fives will also benefit from OTO’s automation expertise, which will be a strong asset for Fives’ other activities in steel.

 

Mr Frédéric Sanchez, Chairman of the Executive Board of Fives, commented, “OTO Mills will bring a unique expertise as well as best-in-class technologies that will significantly enhance our current activity in the supply of pipe and tube mills. Its superior geographical outreach will also open new commercial horizons to our business.”

Antonio Marcegaglia, CEO of the Marcegaglia Group, commented, “I am sure that OTO Mills will find new growth opportunities as part of a large industrial engineering group through even larger synergies, while preserving its unique identity.” The acquisition is expected to close shortly, upon applicable regulatory approvals.