US-based equipment manufacturer for steel rod and bar rolling mills Morgan Construction Co. has signed an agreement for its acquisition by Austria-based giant engineering and plantmaking company, Siemens VAI Mining and Metals Technologies GMBH & Co. The total value of the transaction has not been disclosed, however.
The deal, which is to be finalized during the second quarter of 2008, remains subject to US and European antitrust clearances.
Morgan Construction Co, which was established in 1888, has subsidiaries in China, India, Brazil and the UK, with about 1,100 employees worldwide.
Commenting on the acquisition, Philip R. Morgan, president and CEO of Morgan Construction Co., said that no alteration in the personnel and management staff will be made in the company as Siemens plans to expand its business, not shrink it. Meanwhile, Richard Pfeiffer, CEO of Siemens VAI Metals Technologies GMBH & Co., said, "The purchase will speed up Siemens' expansion in the area of rolling and processing technology."