Applied Power Inc. Announces Intent to Acquire Shelter Integration Business from Ericsson And the Acquisition of Malcoe Enclosures Ltd.Business Editors WAUKESHA, Wis.--(BUSINESS WIRE)--May 23, 2000 Applied Power Inc. ("APW APW All Pro Wrestling APW Altmar Parish Williamstown (School District; Parish, New York) APW Add-Printer Wizard (Microsoft Windows) APW Augmented Plane Wave APW Apparent Polar Wander ") (NYSE NYSE See: New York Stock Exchange : APW), a global leader in integrated electronic enclosure systems, announced today its intent to acquire Ericsson's shelter businesses currently located in Sweden, Brazil, Spain, Turkey and the shelter related part of a facility located in Great Britain Great Britain, officially United Kingdom of Great Britain and Northern Ireland, constitutional monarchy (2005 est. pop. 60,441,000), 94,226 sq mi (244,044 sq km), on the British Isles, off W Europe. The country is often referred to simply as Britain. . This business encompasses product development of shelter solutions and supply chain management of enclosures, thermal management, power supplies, and other components, which are then integrated into complete shelters. The transaction will close following completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , execution of various agreements and satisfaction of other closing conditions. About The Strategy APW's acquisition of the Ericsson shelter integration business strengthens the Company's enclosure product offering by providing another solution for the telecom marketplace. This business complements APW's existing breadth of offerings, which include the following: Telecom Wireless Product Family - Shelters - Outdoor Pad Mounted Cabinets - Indoor Pad Mounted Cabinets - Outdoor Pole Mounted Cabinets - Specialty Outdoor Enclosures - Underground Enclosures This comprehensive enclosure product offering combined with APW's capabilities in thermal management, power supplies and integration services offers a complete horizontal and vertical solution to telecom OEMs, telecom operators and infrastructure service providers. About the Product Shelters are a walk-in enclosure product generally used for housing and protecting telecom equipment. Fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: from steel, aluminum or fiberglass, they are designed and manufactured in modular form In mathematics, a modular form is a (complex) analytic function on the upper half-plane satisfying a certain kind of functional equation and growth condition. The theory of modular forms therefore belongs to complex analysis but the main importance of the theory has traditionally for ease of fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and assembly. They are designed to meet rigorous requirements for thermal performance, weatherproofing and security. Compared to outdoor enclosures, shelters offer the following advantages:
- Ease of use - allows walk-in capability for maintenance and
inspection.
- Expandability - can accommodate up to six base stations in a
single shelter.
- Efficient - modular shelters, including foundation and mast, are
erectable in the field within 24 hours.
Under the proposal, APW will assume Ericsson's shelter manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in Sweden, Brazil, Spain, Turkey, and the shelter related part of a facility located in Great Britain. The facilities are staffed by a complement of Ericsson employees and outsourced labor. In all, approximately 130 Ericsson employees will be offered positions with APW. Additionally, APW will acquire the rights to market Ericsson's patented SWESITE(R) Shelter System Solution Design. About the Market The wireless infrastructure market remains extremely robust with annual growth projections of 18% to 20 % over the next several years. The growth is fueled by a number of factors, including:
- Preference for wireless solutions in emerging markets (China and
India).
- Significant growth in the United States
- Subscriber trends continue to increase.
- New applications (such as wireless Internet and broadband
services) continue to consume network capacity.
- The premium prices paid for 3G licenses require rapid installation
of the underlying infrastructure.
- The rapid introduction of mobile applications using hand-held
devices.
- New 3G licenses will create additional operators.
APW estimates the market opportunity for shelters at $1 to $3 billion with rapid growth. About the Customers APW will be the preferred supplier of shelter solutions for Ericsson on a worldwide basis. Ericsson is committed to continue its marketing of shelter solutions to its customer base with APW providing the integrated shelter products. Additionally, APW will market these shelter capabilities to other telecom OEMs, telecom operators and infrastructure service providers. About the Malcoe Enclosure Acquisition In connection with the pending Ericsson shelter transaction, APW recently acquired Malcoe Enclosures Limited, specializing in design and manufacture of shelters, outdoor and underground enclosures. Malcoe, which is located in Southern England Southern England is an imprecise term used to refer to the southern counties of England. Differing usages apply the term with varying geographic extents. In most definitions Southern England includes all the counties on the English Channel; from west to east these are: Richard G. Sim, Chairman and Chief Executive Officer of APW commented "I am delighted that Ericsson views APW as their preferred partner in developing shelter solutions to support Ericsson's operations on a global basis." Mr. Sim continued, "The Ericsson and Malcoe acquisitions will further accelerate APW's revenue growth in 2001." About Applied Power Inc. Applied Power Inc., headquartered in Waukesha, Wisconsin Waukesha [ˈwɑkəˌʃɑ] is a city in and the county seat of Waukesha CountyGR6, Wisconsin, United States. As of the 2000 census, Waukesha had a total population of 64,826. , is a global company comprised of two business segments. Electronics supplies electronic enclosures, power supplies, thermal systems, backplanes, and cabling either as products or integrated as a system supplied along with new product design, supply chain management, assembly and test services. Industrial is composed of standard and customized OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and products sold to a wide array of end users through distribution or directly into a variety of niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. . Certain of the above comments represent forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Management cautions that these projections are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Applied Power's results are also subject to general economic conditions, continued market acceptance of the Company's new product introductions, the successful integration of recent acquisitions, operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: risk due to competitive pricing, foreign currency fluctuations and interest rate risk. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion