In an effort to improve its supply chain, Miller Industries Inc. announced on Wednesday the acquisition of Southern Hydraulic Cylinder Inc. from Athens, Tennessee for $17.5 million.
The Oolteva-based trailer manufacturer said the acquisition of Southern Hydraulic Cylinders will enable the production and supply of custom-made welded hydraulic cylinders for a variety of industries and should help boost the company’s first-year profits after the acquisition.
Southern Cylinders produces hydraulic components with the longest lead times in Miller’s manufacturing process, said William J. Miller II, chief executive of the company. Miller Industries is the world’s largest trailer and towing equipment manufacturer with 2022 sales of $915.2 million.
“This is an important step in improving the security of our supply chain through vertical integration,” Miller said on Wednesday. the ability to deliver finished products to customers, reduce inventory levels and fulfill record backlogs.”
Miller said he hopes to boost Southern Cylinders’ productivity through automation and improved production efficiency.
The deal, announced on Wednesday, is still subject to certain closing and net working capital adjustments. Even when redeemed for cash, “we remain disciplined in the use of capital,” Miller said, and “we are not prone to debt.
Southern HydraulicCylinder, founded in 1989, manufactures hydraulic cylinders at its 53,000 square foot manufacturing facility off Interstate 75 in Athens. Jeff Zabo is the company’s CEO and plant manager.
Southern Cylinders “has a strong heritage in the region,” Miller said. “The companies will work together to promote economic growth in the region,” he added.
“We look forward to working with our new customers and continuing to deliver the exceptional quality and service they have come to expect,” Miller said in a statement.
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Post time: Jun-27-2023