NN, Inc. (NNBR) Closes $245.2M Acquisition of Autocam

NN, Inc. (Nasdaq: NNBR) announced that it has completed its previously announced acquisition of Autocam Corporation for approximately $245.2 million in cash, $29.8 million in assumed debt and $25 million in stock. Autocam is a global leader in the engineering, manufacture and assembly of highly complex, system critical components for fuel systems, engines and transmission, power steering and electric motors. NN was advised on the transaction by KeyBanc Capital Markets, Inc.

In connection with the closing, NN obtained a new $350 million term loan facility underwritten by Bank of America, N.A. Merrill Lynch, Pierce, Fenner & Smith Incorporated and KeyBank National Association and a $100 million asset backed revolver that was underwritten by KeyBank National Association and Bank of America, N.A. The proceeds will be used to pay the cash portion of the purchase price, to repay existing indebtedness and to pay fees and expenses in connection with the transaction.

Additionally, NN announced that John Kennedy, founder and former Chief Executive Officer of Autocam has been appointed to serve on NN's board of directors.

With the completion of the transaction, NN becomes one of the top three global manufacturers of metal bearing and precision metal components with expected pro forma 2014 sales of over $675 million, more than 4,200 employees and 29 operations in the United States, Western Europe, Eastern Europe and China. The anticipated 2014 sales do not include approximately $42 million in expected sales from a 49% Chinese joint venture accounted for under the equity method. Autocam will join NN's Precision Metal Components Segment forming a new, dedicated Autocam Precision Metal Components segment. The Autocam brand name will continue to be used to leverage its strength and reputation in the marketplace.

Richard Holder, President and Chief Executive Officer of NN, Inc. commented, "The sum of the combined strength of NN and Autocam creates a division that is much stronger than the individual parts and provides us with expanded opportunities to drive future growth and bring increased value to our shareholders. We will move forward with a clear focus to achieve a seamless integration that maximizes the many synergies that we have identified between these two great companies."

Mr. Holder continued, "Although this transaction is transformative to NN, it does not signal the end of our ongoing strategy to aggressively grow our business through strategic, profitable acquisitions that provide complementary resources and lines of business."

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