Pending regulatory approval, commercial grade asphalt equipment manufacturer B.R. Lee will be acquired by Vision Technologies Land Systems (VTLS) in a $129 million deal.
The plant, currently based in Denver on N.C. 16, will be moving to a new facility in the Lincoln County Industrial Park in Lincolnton later this year.
That facility is currently under construction near Crate and Barrel in the park.
On Friday, president and chief executive officer (CEO) Kelly Majeskie said moving the entire operation from Denver to Lincolnton was due to growth, which the buyout will help facilitate.
â€œWe are looking to modernize our facility,â€ said Majeskie. â€œWe need room to continue to grow business and create capacity.â€
Once the deal is approved, B.R. Leeâ€™s new and expanded manufacturing facility in Lincolnton will house the core operations for all of its products and services worldwide.
In a press release issued Friday, Majeskie said the acquisition by Singapore Technologies Engineering â€“ the parent company of VTLS â€“ means global expansion for brands LeeBoy and Rosco.
â€œLeveraging on ST Engineeringâ€™s financial strength and engineering resources, B.R. Lee aims to better serve its customers and stay at the forefront of pavement solutions technology,â€ said Majeskie.
Majeskie added the company welcomes the opportunity to expand in the Asian market.
The release also stated the company is the number one, original equipment manufacturer in the U.S. by unit volume for commercial class asphalt pavers and brooms.
According to Majeskie, it will take about 45 days for the deal to materialize once regulatory approval happens.
The company employs 300 people and Majeskie added he doesnâ€™t plan on adding any new jobs anytime soon.
The sale, according to Majeskie, is good for the company.
â€œST Engineering is a strategic, long-term investor that recognizes the potential of B.R. Lee and the value of its employees and dealer network,â€ said Majeskie. â€œThey offer us the infrastructure and vision needed for this expansion.â€
B.R. Lee offers approximately 65 different models of equipment for road construction and maintenance with an extensive distribution network covering North America. Its customers range from large road-building contractors, small to medium specialty contractors and governmental agencies.
Singapore Technologies Engineering is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors.
Headquartered in Singapore, ST Engineering reported revenues of $3.34 billion in fiscal year 2005.
With market capitalization of more than $9 billion, ST Engineering employs 16,000 people worldwide with over 100 subsidiaries and associated companies in 17 countries and 29 cities.
by Jon Mayhew