Worthington Acquires Angus Industries

Worthington Industries announced that the Company has acquired the stock of Angus Industries, based in Watertown, S.D.  Angus designs and manufactures high-quality, custom-engineered open and enclosed cabs and operator stations for a wide range of heavy mobile equipment in several end-markets, including agriculture, construction and mining. In addition to its South Dakota headquarters, the company operates facilities in Northwood, IA, Greeneville, TN, and Florence, SC, with approximately 1,250 non-union employees.

“Angus is a great addition, providing a new manufacturing segment for our Company,” said John McConnell, Chairman and CEO. “They are a good fit with our strategic objective to decrease earnings volatility and bring higher value-added manufacturing. Additionally, they are a market leader in the custom-engineered cab space and our companies have similar people first cultures. They have a dedicated workforce and a great management team with a focus on continuous improvement.” McConnell adds, “We are also pleased that we share some significant customers, while providing different products and services. The Angus end-markets will increase our presence in the construction, agriculture and mining industries. We see opportunities to invest in the business by adding domestic capacity, expanding some capabilities, as well as targeting international expansion to support customer growth.”

Angus had over $200 million in revenue in 2011, and the acquisition is expected to be accretive to earnings in its first year. The Angus engineering team works closely with customers providing new product design and testing. It also fills key project management roles from the initial design phase, to prototyping, testing, and tooling, through final manufacturing and delivery of finished product. Manufacturing capabilities include laser cutting, metal forming, rolled-tube bending, curving, machining, robotic welding, e-coating, painting and assembly. Angus will operate as a stand-alone business segment, Engineered Cabs, in the Worthington Industries portfolio of businesses.

Worthington purchased Angus for $180 million in cash funded through its revolving credit facility, and proceeds from a $50 million special dividend recently received from its WAVE joint venture. Post-closing, Worthington has approximately $568 million of funded debt and availability under its revolving credit facilities of $184 million.