Stiles Machinery Inc. Acquired by HOMAG Group AGFebruary 3rd, 2014 | Category: Industry News
HOMAG Group, a manufacturer of plant and machinery for the woodworking industry and cabinet makers, effective today, has acquired Stiles Machinery. The company says it has increased its share in the voting capital of the U.S. distribution and service company Stiles from 26.7 to 100 percent. The shares were sold by Peter Kleinschmidt who headed up the company for 39 years and is now retiring from active business. Following the acquisition, Kleinschmidt will advise as a member of the supervisory board of Stiles.
HOMAG Group’s CEO Dr. Markus Flik says, “Within our industry, the U.S. is one of the dynamic markets with growth opportunities and is for us of strategic importance. As market leader in the U.S., we are acquiring the leading distribution and service organization in this industry. Increasing our interest in Stiles which we have held since 1992 is the only logical step. This measure allows us to benefit directly from the anticipated re-industrialization in the U.S. in which we will now play a role on account of our direct market access.”
Having a relevant market share in excess of 35 percent, Stiles is the leading distribution and service organization for machines and production lines for the U.S. woodworking industry. With more than 290 employees, Stiles generated annual sales revenue of about $158 million USD in 2013. This constitutes a rise on of 22 percent on 2012. Because of the increase in industrial activity and the great need for investment, experts also anticipate similar growth rates in the next few years both for stand-alone machines and production lines. The company will continue to trade as Stiles Machinery Inc.
“We now have a more direct link to our customers in the U.S.,” says Jürgen Köppel, HOMAG Group’s CSO. “Stiles’ highly qualified sales and service team have built up excellent customer relationships. HOMAG Group Engineering with its project expertise allows us to serve the growing U.S. project business more intensively and provide the best possible support to our customers with global operations.”
Kleinschmidt adds, “I know that my life’s achievement is being placed in good hands. I have been cooperating closely with the HOMAG Group for more than 30 years. It is the ideal partner to write the next chapter in Stiles’ success story.”