Category: Manufacturing

Mattr Corp. to Acquire AmerCable in $280 Million Deal, Expanding Cable Capabilities in U.S. Market

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Mattr’s acquisition of AmerCable strengthens its presence in North America and broadens its product offerings.
– The acquisition is immediately accretive to EPS and expected to bring recurring revenue and stability.
– Addition of AmerCable’s medium-voltage cable capabilities complements Mattr’s Shawflex line, supporting growth in electrification and infrastructure.

Mattr Corp. (TSX: MATR), a leader in materials technology, has announced an agreement to acquire AmerCable Incorporated, a premier U.S.-based manufacturer of highly engineered wire and cable solutions. The acquisition, valued at $280 million USD, is expected to close by the end of 2024, subject to regulatory approvals. This strategic move positions Mattr to enhance its footprint in the U.S. and expand its product offerings in the growing global electrification market.

This acquisition will integrate AmerCable’s capabilities with Mattr’s Connection Technologies segment, allowing Mattr to better serve its North American clients by increasing its manufacturing capacity for medium and low-voltage electrical power, control, and instrumentation cables. Through AmerCable’s facilities in Arkansas and Texas, Mattr is poised to strengthen its North American manufacturing network, which includes its Shawflex brand in Canada.

The acquisition is aligned with Mattr’s strategy of diversifying its portfolio and building a more extensive geographic presence. Mattr CEO Mike Reeves highlighted that this acquisition will support the ongoing modernization of critical infrastructure in North America, bringing enhanced capabilities in low and medium voltage cable solutions essential to the electrification movement.

AmerCable’s products are designed for mission-critical applications, where durability and reliability are paramount. Its robust production network in the U.S. adds complementary capabilities to Mattr’s existing Shawflex brand, offering an expanded product range. In particular, AmerCable’s medium-voltage solutions will broaden Mattr’s offerings, making it a key provider of both high-tech and durable cable systems for extreme operating environments.

The acquisition is expected to be immediately accretive to Mattr’s earnings per share (EPS) and is projected to create substantial long-term value for Mattr shareholders. CFO Tom Holloway noted that AmerCable’s addition would boost Mattr’s financial performance and is expected to bring added stability through recurring revenues, thanks to AmerCable’s long-term relationships with key blue-chip clients.

The transaction value of $280 million USD represents a compelling valuation, with a purchase price set at approximately 5.0 times AmerCable’s Adjusted EBITDA for the 12-month period ending June 2024. Post-transaction, AmerCable will add around $75 million CAD in TTM Adjusted EBITDA, reinforcing Mattr’s commitment to margin growth within its Connection Technologies segment.

In addition to enhancing its financial profile, the acquisition will also improve Mattr’s raw material procurement efficiency and create opportunities for cross-selling and innovation by leveraging the shared technical expertise of both companies. This move is expected to accelerate Mattr’s position in high-growth markets, driven by the rise of electrification and infrastructure renewal.

With AmerCable’s production sites in Arkansas and Texas complementing Mattr’s facilities in Vaughan, Ontario, the combined network will provide a platform for organic and acquisition-driven growth opportunities across North America. The transaction has received unanimous board approval from both Mattr and Nexans, AmerCable’s previous parent company, with the anticipated close set for year-end.

Mattr will host a shareholder and analyst conference call to discuss further details on the acquisition and its strategic implications on November 8, 2024.

Apollo Global to Take Barnes Group Private in $3.6 Billion Deal

Posted on by cpatches
Key Points:
– Apollo Global Management is acquiring Barnes Group in a $3.6 billion all-cash deal, providing shareholders with $47.50 per share, a 22% premium over the June 25, 2024 share price.
– The transaction is expected to close by Q1 2025, after which Barnes will be delisted from the NYSE and become a privately held company.
– Apollo plans to support Barnes in its continued innovation and long-term growth across its aerospace and industrial sectors.

Barnes Group Inc. (NYSE: B) announced today that it has entered into a definitive agreement to be acquired by funds managed by Apollo Global Management, Inc. (NYSE: APO) in an all-cash transaction valued at approximately $3.6 billion. Under the terms of the agreement, Barnes shareholders will receive $47.50 per share, representing a 22% premium over the company’s undisturbed closing share price on June 25, 2024.

A Strategic Move for Growth

The deal delivers immediate and certain cash value to Barnes shareholders while positioning the company to continue serving its customers in the aerospace and industrial sectors. Apollo Global Management, a global alternative asset manager with over 35 years of investment experience, is committed to helping companies like Barnes achieve long-term sustainable growth. Apollo has a proven track record of investing in leading businesses and positioning them for future success.

“This transaction will enable Barnes to continue meeting and exceeding our customers’ needs with innovative aerospace and industrial products, systems, and solutions,” a Barnes spokesperson stated.

Barnes to Be Delisted and Taken Private

Upon completion of the transaction, which is expected by the end of Q1 2025, Barnes will be delisted from the New York Stock Exchange and become a privately held company. The deal is subject to customary closing conditions, including approval by Barnes shareholders and regulatory approval.

About Barnes Group

Founded in 1857 and headquartered in Bristol, Connecticut, Barnes Group Inc. has built a reputation for pioneering excellence in advanced manufacturing processes, automation solutions, and applied technologies across various industries. Barnes Aerospace specializes in producing and servicing complex components for commercial and military turbine engines, while Barnes Industrial focuses on engineered plastics and industrial automation solutions.

About Apollo Global Management

Apollo Global Management is a high-growth, global asset manager with approximately $696 billion in assets under management as of June 30, 2024. Apollo’s investment strategies span a wide spectrum, from investment-grade to private equity, focusing on delivering excess returns for its clients. The company has a long history of providing capital solutions to businesses, helping them grow and achieve financial security.

Fed’s Rate Cut Offers Limited Relief for U.S. Factories Amid China Competition

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– The Federal Reserve’s recent rate cut provides only marginal benefits to U.S. manufacturers.
– Rising raw material costs and competition from Chinese imports continue to challenge the U.S. manufacturing sector.
– Energy price hikes and potential port strikes add to the pressures faced by U.S. factories.

The Federal Reserve’s recent decision to cut interest rates by half a percentage point has sparked hope among some U.S. manufacturers. However, for many factory owners, the benefits of the rate reduction are overshadowed by ongoing challenges, including competition from China, high raw material prices, and labor disruptions.

Drew Greenblatt, president of Marlin Steel, a small manufacturer of wire baskets in Baltimore, represents one such case. His business had seen a surge in demand during the COVID-19 pandemic when a major client shifted orders from China to the U.S. However, this boost was short-lived, as the customer reverted back to cheaper Chinese suppliers, leaving Greenblatt grappling with surplus capacity and excess workers.

“The rate cut is welcome, but it doesn’t solve the real issue,” Greenblatt said. “We need more aggressive trade actions to level the playing field.”

The Federal Reserve’s rate cut is the first in several years, aimed at stimulating economic growth by making borrowing more affordable for businesses. In theory, lower interest rates should spur investment and expansion, but for manufacturers like Greenblatt, the rate reduction doesn’t alleviate the more significant issues plaguing the sector.

U.S. manufacturers continue to face heightened competition from low-cost Chinese imports. Despite tariffs and trade restrictions, companies often find themselves losing business to Chinese firms that offer more affordable products. In many cases, even with lower interest rates, the cost advantage of Chinese imports is too great for U.S. factories to overcome.

“The rate cut doesn’t fix supply chain issues or lower raw material costs,” said Cliff Waldman, CEO of New World Economics. “These are the real concerns U.S. manufacturers are dealing with, and lower borrowing costs won’t solve those problems.”

While competition from overseas remains a significant concern, domestic challenges also compound the difficulties faced by U.S. manufacturers. Rising electricity costs, particularly in states like California, are taking a toll on energy-intensive industries. Kevin Kelly, CEO of Emerald Packaging, shared how his family-run business, which produces plastic bags for produce companies, saw a steep rise in electricity costs over the summer.

“We just didn’t anticipate such a sharp increase in our power bill,” Kelly said. “We’ve had to adjust our production schedule and shut down some operations during peak hours, but it’s still eating into our profitability.”

The specter of labor unrest and potential port strikes further exacerbates the challenges. With a possible strike looming at major East Coast and Gulf of Mexico ports in October, manufacturers fear disruptions in supply chains, which could cause delays and drive up costs. This would be another setback for U.S. factories that are already navigating supply chain bottlenecks and inflationary pressures on inputs.

For many manufacturers, the Fed’s interest rate cut, while beneficial, offers only limited relief. Supply chain disruptions, rising raw material and energy costs, and stiff competition from Chinese imports present much more significant hurdles.

As Greenblatt noted, “The rate cut helps, but it’s just a small piece of a much bigger puzzle. We need stronger trade policies and measures that address the root causes of our struggles.”

The U.S. manufacturing sector, once a cornerstone of economic growth, now finds itself in a precarious position. While the rate cuts may provide a short-term boost, longer-term solutions are required to address the structural challenges the industry faces. Without significant reforms in trade policies and support for domestic production, manufacturers will continue to struggle despite favorable interest rates.

U.S. to Award $3 Billion to 25 Battery Manufacturing Projects, Boosting Domestic Production

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– U.S. DOE to award $3 billion to 25 battery manufacturing projects.
– Projects will create 12,000 jobs and reduce reliance on China for critical minerals.
– Funding will enhance domestic production, innovation, and recycling of advanced battery technologies.

The U.S. is making another strategic move to bolster its battery manufacturing sector by awarding $3 billion to 25 projects across 14 states. This comes as part of the Biden administration’s larger effort to reduce reliance on China for critical minerals and battery production. The projects, aimed at expanding domestic production of advanced batteries and recycling capabilities, are expected to create 12,000 new jobs and generate $16 billion in total investment.

These awards represent a critical step in strengthening U.S. leadership in the clean energy space, particularly as demand for electric vehicles (EVs) and energy storage systems accelerates. This initiative follows recent changes to U.S. EV tax credits, which are designed to shift battery production and the sourcing of critical minerals away from China.

Albemarle, a key player in lithium production, will receive $67 million for a North Carolina-based project to produce anode material for next-generation lithium-ion batteries. Meanwhile, Honeywell will get $126.6 million to build a large-scale facility in Louisiana, where it will produce a critical electrolyte salt for lithium batteries. These investments demonstrate how U.S. companies are gearing up to meet the future needs of the EV market and beyond.

Other notable projects include a $225 million award to TerraVolta Resources to produce lithium using Direct Lithium Extraction (DLE) technology, and a $150 million investment in Clarios Circular Solutions to recycle lithium-ion battery production scrap in South Carolina. These efforts are crucial as most U.S. production scrap is currently exported to China for processing, a gap the Biden administration is determined to close.

The announcement further highlights the U.S. government’s increasing focus on battery manufacturing as a key area of growth for both the economy and the clean energy transition. Revex Technologies, for example, is set to receive $145 million to turn waste from a U.S. nickel mine into enough domestic nickel production to power at least 462,000 EV batteries annually. Such investments emphasize the U.S.’s commitment to securing a reliable domestic supply of critical materials for clean energy technologies.

“Mineral security is essential for climate security,” said White House climate adviser Ali Zaidi, adding that these projects will position the U.S. to lead in next-generation battery technologies, from solid-state batteries to new chemistries.

In addition to strengthening the EV supply chain, these projects also emphasize the importance of creating sustainable, domestic sources for battery materials. The DOE’s planned $225 million award to SWA Lithium for producing lithium carbonate from brine, using DLE technology, showcases how innovative methods are being supported to minimize environmental impacts while boosting U.S. production.

With growing bipartisan support, the battery manufacturing sector is poised to play a pivotal role in both U.S. energy independence and the country’s green energy goals. These awards further underscore the importance of developing domestic infrastructure to meet the needs of a rapidly changing global energy landscape.

Nano Dimension to Acquire Desktop Metal: A Game-Changer in Additive Manufacturing

Posted on by slightbourne@noblecapitalmarkets.com

The additive manufacturing landscape is set for a seismic shift as Nano Dimension Ltd. (Nasdaq: NNDM) announces its plans to acquire Desktop Metal, Inc. (NYSE: DM) in an all-cash transaction. This merger, expected to close in Q4 2024, promises to create a powerhouse in the 3D printing industry, offering investors a unique opportunity to capitalize on the burgeoning trend of digital manufacturing.

Under the terms of the agreement, Nano Dimension will purchase all outstanding shares of Desktop Metal for $5.50 per share, valuing the company at approximately $183 million. This represents a 27.3% premium to Desktop Metal’s closing price on July 2, 2024. However, investors should be aware that the final price could potentially decrease to $4.07 per share, reducing the total consideration to $135 million, depending on transaction expenses and other factors outlined in the agreement.

The strategic rationale behind this merger is compelling. By combining two complementary product portfolios, the new entity aims to create a comprehensive offering across metal, electronics, casting, polymer, micro-polymer, and ceramics applications. This broader product range is expected to accelerate the industry’s transition from prototyping to mass production, a key growth driver in the additive manufacturing sector.

The merger will also deepen the companies’ penetration in key end markets such as automotive, aerospace/defense, industrial, and medical. The combined entity will serve an impressive roster of blue-chip customers, including Amazon, Tesla, NASA, and the US Army, positioning it at the forefront of industry innovation and adoption.

From a financial perspective, the merged company is projected to have 2023 combined revenue of $246 million, with a notable 28% generated from recurring revenue streams. This recurring revenue component is particularly attractive to investors, as it provides more stable and predictable cash flows. Moreover, the deal is expected to generate over $30 million in run-rate synergies over the next few years, in addition to previously announced cost savings from each organization.

Post-merger, the combined entity is expected to boast a strong cash position of approximately $665 million (or $680 million at the reduced price scenario), providing ample resources for future growth initiatives and R&D investments. This financial strength, coupled with an installed base of over 8,000 systems, positions the new company to capitalize on significant opportunities in services and consumables, further enhancing its recurring revenue potential.

The merger positions the new company as a leader in the rapidly evolving additive manufacturing industry, particularly in the transition from prototyping to high-volume production. Investors should take note of the company’s focus on high-tech, premium margin solutions, which could lead to improved profitability in the long term. The diverse product portfolio and expanded customer base also provide some insulation against industry-specific risks.

However, potential investors should be aware of the challenges that come with such a significant merger. Integration risks, including the consolidation of operations across multiple geographies, could impact short-term performance. Additionally, the transaction is subject to approval by Desktop Metal’s stockholders and regulatory authorities, which introduces some uncertainty. The additive manufacturing industry is also highly competitive and rapidly evolving, which may require continuous innovation and investment to maintain market position.

For investors interested in the additive manufacturing sector and M&A activity, this deal offers an attractive entry point into a potentially transformative merger. The combined company’s strong financial position, diverse product offering, and focus on high-growth areas of digital manufacturing make it a compelling investment proposition. However, as with any merger, investors should closely monitor the integration process and the company’s ability to realize projected synergies. The potential for price adjustments also warrants attention, as it could impact the overall value of the deal.

In conclusion, the Nano Dimension-Desktop Metal merger represents a significant consolidation in the additive manufacturing industry, creating a well-capitalized leader with a comprehensive product portfolio. For investors willing to navigate the inherent risks of M&A transactions, this deal could offer substantial long-term value as the additive manufacturing industry continues its growth trajectory, potentially reshaping the future of manufacturing across multiple sectors.

Charging Ahead: How U.S. Tariffs on Chinese EVs Will Impact the Market

Posted on by slightbourne@noblecapitalmarkets.com

The United States government has fired a major salvo in the escalating electric vehicle (EV) battleground with China, slapping heavy tariffs on Chinese EV imports as well as key battery materials and components. While the move aims to protect American jobs and manufacturers, it carries significant implications for automakers, suppliers, and investor portfolios on both sides of the Pacific.

At the center of the new trade barriers is a 100% tariff on Chinese-made EVs entering the U.S. market. The administration has also imposed 25% duties on lithium-ion batteries, battery parts, and critical minerals like graphite, permanent magnets, and cobalt used in EV production.

For American automakers like Tesla, General Motors, and Ford, the tariffs could provide a substantial competitive advantage on home soil. By erecting steep import costs on Chinese EVs, it makes their domestically produced electric models immediately more price competitive versus foreign rivals. This pricing edge could help ramp up EV sales for Detroit’s Big Three as they work to gain traction in this burgeoning market.

The tariffs represent a major headache for Chinese automakers like BYD that have ambitions to crack the lucrative U.S. EV market. BYD and peers like Nio have been counting on American sales to drive their global expansion efforts. The 100% tariff makes their EVs essentially uncompetitive on price compared to domestic alternatives.

However, the calculus could change if Chinese EV makers ramp up battery production and vehicle assembly closer to U.S. shores. BYD has already established a manufacturing footprint in Mexico. If more production is localized in North America, Chinese brands may be able to circumvent the duties while realizing lower logistics costs.

The impacts extend beyond just automakers. Battery material suppliers and lithium producers could face production cuts and lower pricing if Chinese EV demand softens due to fewer exports heading stateside. Major lithium producers like Albemarle and SQM saw shares dip as the tariff news increased global oversupply fears.

But if U.S. electric vehicle adoption accelerates in response to the import barriers, it could create new demand for lithium and other battery materials from domestic sources, analysts note. North American miners and processors may emerge as beneficiaries as automakers look to localize their supply chains.

Of course, trade disputes cut both ways. There are risks that China could retaliate against major U.S. exports or American companies operating in the country. That creates potential headwinds for a wide range of U.S. multinationals like Apple, Boeing, and Starbucks that rely on Chinese production and consumption. Any tit-for-tat actions could ripple across the global economy.

The levies also raise costs across EV supply chains at a vulnerable time. With inflation already depressing consumer demand, pricier batteries and components could curb the pace of electrification both in the U.S. and globally if passed along to car buyers. Conversely, domestic automakers have leeway to absorb higher input expenses to gain market share from Chinese imports.

With EV competition heating up between the world’s two largest economies, investors will need to scrupulously analyze potential winners and losers from the unfolding trade battle across the electric auto ecosystem. In the near-term, the tariffs appear to boost American legacy automakers while putting China’s crop of upstart EV makers on the defensive. Global battery and mineral suppliers face an uncertain shake-up.

Over the longer haul, costs, capital outlays, production geography, and consumer demand dynamics will ultimately determine the fallout’s enduring market impacts. The new levies represent a double-edged sword potentially accelerating the EV transition in the U.S. while fracturing previously integrated cross-border supply lines.

Prudent investors should weigh both the risks and opportunities across the entire EV value chain. While headline-grabbing, tariffs alone won’t determine winners and losers in the seismic shift to electric mobility taking shape globally. Proactively adjusting portfolios to the changing landscape will be crucial for optimizing exposures.

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Haynes International to be Acquired by Acerinox Subsidiary

Posted on by cpatches

In a significant development within the metallurgical industry, Acerinox’s wholly owned U.S. subsidiary, North American Stainless, is set to acquire Haynes International (HAYN), a leading developer, manufacturer, and marketer of technologically advanced high-performance alloys. The all-cash transaction, valued at $798 million, positions Acerinox to fortify its global leadership in the high-performance alloy segment.

Under the definitive agreement, Acerinox will acquire all outstanding shares of Haynes for $61.00 per share in cash, reflecting a premium of approximately 22% to Haynes’s six-month volume-weighted average share price ending February 2, 2024. The enterprise value of the deal stands at approximately $970 million. The transaction has received unanimous approval from the Boards of Directors of both Haynes and Acerinox.

Strategic Benefits for Acerinox:

  • Global Leadership: Strengthens Acerinox’s global leadership in the high-performance alloy segment.
  • U.S. Market Expansion: Expands Acerinox’s presence in the U.S. market, creating new opportunities in the aerospace sector.
  • Strategic Investment: Haynes to reinvest around $200 million over the next four years, particularly in Haynes’s Kokomo operations, to establish an integrated HPA and stainless steel platform.
  • Synergies and Growth: Anticipates annual synergies of $71 million, primarily unlocked through the $200 million investment, fostering growth and margin enhancements.
  • Complementary Businesses: Creates additional value through the combination of complementary businesses, expanding U.S. operating capabilities and establishing a worldwide sales and distribution network.
  • Accelerated Growth: Provides a strong platform to accelerate growth in high-performance alloys and specialty stainless in North America.
  • R&D Capabilities: Adds extensive R&D capabilities and a significant patent portfolio, reinforcing Acerinox’s innovation potential.

Haynes’s Perspective:

  • Significant Premium: Delivers substantial value to Haynes stockholders, offering a premium of approximately 22% to the six-month volume-weighted average share price.
  • Long-Term Success: Ensures the long-term success of Haynes by validating the strength of the business and providing access to Acerinox’s financial strength and expertise.
  • Strategic Investment: The $170 million investment in Haynes’ operations supports continued growth in both flat and round products for the global market.
  • Enhanced Capacity: Positions Haynes to meet dynamic customer demands by increasing manufacturing capacity and offering more differentiated products, applications, and services with faster lead times.
  • Rich Heritage: Merges Haynes’ 112-year-strong foundation and leadership in high-performance alloys with the largest fully integrated stainless-steel company in the U.S.

Regarding the transaction, Noble Capital Markets Senior Research Analyst Mark Reichman stated, “In our opinion, the transaction provides a fair return for Haynes’ shareholders. Additionally, Acerinox has committed to investing $170 million into Haynes’ operations which will support the modernization and growth of the company’s global business in both flat and round products.” Mark initiated research coverage on Haynes International on February 16, 2023.

The information contained in this article, other than Mark’s quote, was derived from the individual press releases issued by the companies involved in this transaction. This press releases can be found here:

https://www.acerinox.com/en/comunicacion/noticias/Acerinox-to-Acquire-Haynes-International/

https://www.haynesintl.com/wp-content/uploads/2024/02/02.05.2024-Transaction-Press-Release.pdf

Haynes International (HAYN) is currently covered by Noble Capital Markets Senior Analyst Mark Reichman. Noble Capital Markets, Inc. is a subsidiary of Noble Financial Group, Inc., the parent company of Channelchek. All equity research on Channelchek is provided by Noble Capital Markets. No part of this article was prepared by Noble’s analysts. Please view Mark’s most recent research report on Haynes International for any applicable disclosures.

WillScot Bolsters Modular Space Solutions With $3.8B McGrath Buyout

Posted on by slightbourne@noblecapitalmarkets.com

WillScot Mobile Mini Holdings Corp. announced Monday that it will acquire modular rental provider McGrath RentCorp in a $3.8 billion deal. The acquisition aims to solidify WillScot’s position as a leading provider of modular space and portable storage solutions across North America.

Under the terms of the agreement, McGrath shareholders will receive $123 per share, comprised of 60% cash and 40% WillScot stock. This reflects a 10.1% premium over McGrath’s share price as of January 26th. Once completed, McGrath shareholders will own approximately 12.6% of the combined company.

The deal comes as WillScot looks to expand its footprint and diversify its customer segments through McGrath’s complementary business. McGrath serves over 10,000 business customers with modular building leasing and sales solutions across the U.S.

According to WillScot CEO Brad Soultz, “The transaction will further accelerate our growth, with combined 2023 pro forma revenue of $3.2 billion and adjusted EBITDA of $1.4 billion, we will be on path to achieve a $700 million free cash flow run-rate twelve months after we close.”

WillScot expects to realize $50 million in run-rate cost synergies within two years following the close of the acquisition in Q2 2024. The company has a track record of successfully integrating past deals and meeting synergy targets.

The combined company will be able to cross-sell value-added products and services and roll out operations best practices across the broader customer base. It will also have increased scale and expanded infrastructure to accelerate organic growth strategies already in place.

Along with revenue and cost synergies, the deal provides WillScot with greater geographic diversification and depth in adjacent sectors like electronic test equipment rental through McGrath’s TRS-RenTelco business.

On the financial front, the combined company is projected to generate approximately $3.2 billion in revenue and $1.4 billion in adjusted EBITDA in 2023. It expects to produce around $700 million in free cash flow within twelve months after the merger is finalized.

To fund the cash component of the acquisition, WillScot has secured committed bridge financing of $1.75 billion, along with expanded capacity from its existing credit facilities. The company is committed to rapid deleveraging and plans to achieve a 3.0-3.5x net leverage ratio within a year post-close.

McGrath’s board has unanimously approved the transaction. With shareholder approval and regulator sign-off, the buyout is anticipated to close during Q2 2024. Until then, McGrath will operate as an independent, publicly traded company.

The acquisition is the latest in WillScot’s strategy to capitalize on demand growth for modular space and storage solutions. The company has acquired over 15 businesses since going public in 2017, including the transformative $1.2 billion merger with Mobile Mini in 2020.

For McGrath shareholders, the deal provides a significant premium and ongoing upside through ownership stake in WillScot. It also enables McGrath’s rental solutions to reach a wider audience through WillScot’s expansive branch network and customer base.

Commercial Vehicle Group (CVGI) – NobleCon19 Presentation Notes

Posted on by cpatches


Tuesday, December 12, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

NobleCon19. Commercial Vehicle Group CFO Andy Cheung presented at NobleCon19. Highlights included are the expansion of its Electrical Systems segment, optimizing costs, and the outlook for truck builds. A rebroadcast is available at https://www.channelchek.com/videos/commercial-vehicle-group-noblecon19-replay.

Electrical Systems. Management highlighted the focus on growth for its higher margin Electrical Systems segment through new business wins, volume growth, and market diversification. The Company expects the segment to become its biggest in a few years. Today, the segment is about 25% of total revenue. It is also strategically adding new plant locations, with two new plants in Morocco and Mexico.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Commercial Vehicle Group (CVGI) – Appoints New CEO

Posted on by cpatches


Tuesday, December 12, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

New CEO. After an extensive search, Commercial Vehicle Group appointed James Ray as the Company’s next President and Chief Executive Officer. On December 20, 2023, he will replace Interim CEO Robert Griffin, who will continue in his role as Chairman of the Board of Directors for CVG.

Strong Background. Mr. Ray brings extensive global and broad-based experience in many of CVG’s key end markets, including electrical systems. Prior to joining CVG’s Board, Mr. Ray served as President, Engineered Fastening at Stanley Black & Decker, Inc. where he held various global industrial P&L and operational leadership roles from 2013 through 2020. Prior to Stanley Black & Decker, he spent more than 25 years in global P&L and engineering leadership roles at TE Connectivity, Delphi, and General Motors.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – Commercial Vehicle Group Appoints James Ray as President and Chief Executive Officer

Posted on by cpatches
Research News and Market Data on CVGI

December 11, 2023

NEW ALBANY, Ohio, Dec. 11, 2023 (GLOBE NEWSWIRE) — Commercial Vehicle Group (“CVG” or the “Company”) (NASDAQ: CVGI), a global leader in the design and manufacturing of electrical systems, vehicle components and accessories, plastic products and robotic assemblies, today announced that its Board of Directors has appointed James Ray as the Company’s next President and Chief Executive Officer. On December 20, 2023, he will replace Interim CEO Robert Griffin, who will continue in his role as Chairman of the Board of Directors for CVG.

The appointment of Mr. Ray follows an extensive, global search process led by international, executive search firm Heidrick & Struggles. The Board thanked Mr. Griffin for leading the Company during the search for the permanent President and CEO.

Mr. Ray has served as an Independent Director on CVG’s Board since March 2020 and will remain on the Board as a non-independent director following his appointment as President and CEO. He also currently serves as an Independent Director on the Boards of Leslie’s, Inc. and Spirit AeroSystems, Inc. In addition to his Board roles, Mr. Ray has provided consulting services to Fortune 100 companies and private equity portfolio companies. He brings extensive global and broad-based experience in many of CVG’s key end markets, including electrical systems. Prior to joining CVG’s Board, Mr. Ray served as President, Engineered Fastening at Stanley Black & Decker, Inc. where he held various global industrial P&L and operational leadership roles from 2013 through 2020. Prior to Stanley Black & Decker, he spent more than 25 years in global P&L and engineering leadership roles at TE Connectivity, Delphi, and General Motors.

Mr. Ray earned a bachelor’s degree in electrical and electronics engineering from Howard University and a master’s degree in manufacturing management from Kettering University.

“We have selected a world-class executive with exceptional experience and leadership skills, and he is extraordinarily well-suited to advance our long-term strategy and accelerate growth,” said Mr. Griffin. “James is a trusted and growth-oriented leader with extensive management experience in global industries. He is the ideal candidate to lead CVG through its next stage of growth, and we expect a very smooth leadership transition.”

Mr. Ray said, “I am honored to be named President and CEO and appreciate the Board’s trust and support. I look forward to working with our approximately 8,000 outstanding employees as we execute our strategy to deliver value to our customers and shareholders. I am excited and energized to lead this diverse organization, a business with an impressive global footprint and diversified product portfolio. In my time on the Board, I have only become more convinced by the strength of CVG’s fundamentals, the transformative strategy and our clear growth potential.”

About CVG

At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve. Information about the Company and its products is available on the internet at www.cvgrp.com.

Investor Relations Contact:
Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com

Media Contact:
Patrick Woolford
Director, Communications
Patrick.Woolford@cvgrp.com