Wilmington, N.C. – Hawk Manufacturing Inc., which recently acquired Global Earth Energy Inc., has terminated its agreement to purchase a majority interest in Trump Equipment Co. Inc., of New Braunfels, Texas. Hawk, a CNC machining company based in Charleston, S.C., had entered into an agreement with the majority shareholders of Trump to purchase the company on Sept. 27, 2013.
"While remaining an attractive target for Hawk Manufacturing in the future, the acquisition of Trump Equipment Company at this time would have comprised our organic growth objectives," stated John Ragsdale, Hawk’s chief executive officer. Ragsdale continued, "We believe that our acquisition of NQM presents a more immediate and beneficial impact upon our long term growth strategies. By concentrating on products and services that provide higher margins, we feel we can better serve our shareholders by fully executing our current and future acquisition strategies."
Hawk announced on Feb. 5, 2014, it acquired aerospace machining shop, NQM Inc.
Hawk is acquiring companies that manufacture complementary products. When combined, these acquisitions would allow for the sharing of resources and provide customer diversification opportunities. Hawk intends to keep all manufacturing U.S.-based. It intends to use existing credit facilities for more than $25 million to complete transactions and to work with various states and local governments and finance authorities on tax incentives, and direct-benefits that could top more than $40 million over the life of the company.
Source: Hawk Manufacturing Inc.