Siemens to Buy Mass. Steel Business
Family-run Morgan Construction Co. will be absorbed into Siemens’ Austrian division
April 4, 2008
Morgan Construction has been acquired by Siemens VAI Metals Technologies for about $130 million, not including about $30 million in debt that came along with the firm.
Morgan Construction posted a notice on its Web site informing viewers that the company, family run for more than 120 years, had agreed to sell itself to Siemens VAI, which runs operations from Austria. Morgan Construction has subsidiaries in China, India, the U.K. and Brazil.
Morgan Construction’s sale was a small auction process run by Paul Sperry, co-founder of Sperry, Mitchell & Co., an investment bank that focuses on privately-run businesses. He said the company has about 1,100 employees and generated last year revenues of about $230 million.
Morgan Construction provides solutions for equipping wire rod mills and high speed bar mills. Founded in 1888, the company has for more than a century been controlled almost exclusively by Morgan family shareholders.
“The integration of these two companies will enable us to set the market standards for future technological development,” said Siemens VAI chief executive officer Richard Pfeiffer, in a statement posted on Morgan Construction’s Web site. “The addition of Morgan's production plants will also enhance Siemens VAI's own value chain. The engineering and service capacities we are gaining from Morgan will also further strengthen the support we can offer customers, from modernizing and upgrading plants to spare-part management and retrofitting.”
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