Fives has entered into a definitive agreement to acquire MAG Americas, a global supplier of high-performance machining solutions and composite processing. A subsidiary of the MAG Group, MAG Americas enjoys a unique position in the high-end segment of large and complex parts machining solutions and composite processing, where it holds a worldwide leading position. Thanks to its high innovation track record, it has developed strong relationships within the key and demanding industries it serves, such as aerospace, oil & gas, mining, agriculture and off-road vehicles. In 2012, it displayed a turnover of c. $400m, of which 67% was generated in North America. This acquisition encompasses several business units: Giddings & Lewis, Cincinnati and Forest-Liné, specializing in composite processing and large metal cutting machines, as well as a unit dedicated to aftermarket services. It employs c.1,000 people, located in the United States, France, Canada, China and South Korea. It also comprises a portfolio of more than 100 patents. The end-markets addressed by MAG Americas offer strong potential for development, notably through an increasing use of composite materials. Moreover, the North American domestic industrial markets, to which it is most exposed, benefit from strong market fundamentals. After completion of the transaction, Fives, thus becoming a significant global player in the machine tool industry – will strongly benefit from the dynamism of the American aerospace and oil & gas sectors, which create opportunities for the machining business.“This acquisition marks another step forward in the development of our Group, which will add to its portfolio the innovative know-how of more than 1,000 employees located in five different countries. As a global supplier of superior and innovative technologies and products, MAG Americas perfectly matches Fives’ strategy to focus on high value-adding industries, such as aerospace," said Frederic Sanchez, chairman of the executive board of Fives. "Through this combination, we are also reinforcing our exposure to a well positioned North American industry and opening to new opportunities for development in emerging countries.” This acquisition is being carried out with the full support of AXA Private Equity, Fives’ main stakeholder, which contributes to this new step in Fives’ development. Completion of the transaction is subject to customary closing conditions and regulatory approvals.