Homag Group increased its share in the voting capital of Stiles Machinery from 26.7 to 100 percent on Monday.
The shares were purchased from Peter Kleinschmidt, who owned Stiles for the last 39 years and is retiring from active business. He will be available to provide advice as a member of the supervisory board of Stiles, according Homag.
“Within our industry, the U.S. 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 U.S. in which we will now play a role on account of our direct market access,” Homag Group CEO Markus Flik said in a statement.
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 U.S. woodworking industry, according to Homag. With more than 290 employees, Stiles generated annual sales revenue of about $158million in 2013. This constitutes a rise on 2012 of 22 percent.
The company will continue to trade as Stiles Machinery.
Kleinschmidt said he 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.”