Published on : Wednesday, February 5, 2014
Homag Group, the world’s leading manufacturer of plant and machinery for the woodworking industry has reportedly increased the voting capital of US distribution and service company Stiles from 26.7 to 100 percent. The shares were sold by Peter Kleinschmidt who headed up the company for 39 years and is now retiring from active business.
HOMAG Group’s CEO Dr. Markus Flik emphasizes: ‘Within our industry, the US is one of the dynamic markets with growth opportunities and is for us of strategic importance. As market leader in the US, we are acquiring the leading distribution and service organization in this industry. Increasing our interest in Stiles which we have held since 1992 is the only logical step. This measure allows us to benefit directly from the anticipated re-industrialization in the US in which we will now play a role on account of our direct market access.’
Having a relevant market share in excess of 35 percent, Stiles is the leading distribution and service organization for machines and production lines for the US woodworking industry. With more than 290 employees, Stiles generated annual sales revenue of about USD 158 million in 2013. This constitutes a rise on 2012 of 22 percent. On account of the increase in industrial activity and the great need for investment, experts also anticipate similar growth rates in the next few years both for stand-alone machines and production lines. The company will continue to trade as Stiles Machinery Inc.
‘We now have a more direct link to our customers in the US’, explains Jürgen Köppel, HOMAG Group’s CSO. ‘Stiles’ highly qualified sales and service team have built up excellent customer relationships. HOMAG Group Engineering with its project expertise allows us to serve the growing US project business more intensively and provide the best possible support to our customers with global operations.’
Peter Kleinschmidt, the owner of the company for many years, is pleased that his business is being acquired by the HOMAG Group: ‘I know that my life’s achievement is being placed in good hands. I have been cooperating closely with the HOMAG Group for more than 30 years. It is the ideal partner to write the next chapter in Stiles’ success story.’