LOS ANGELES, Nov. 28, 2001 – New Century Companies, Inc., said its pending merger with Smith West, Inc., will generate expected annual sales of about $45 million in 2002.
The merger is the next step in positioning the company as a vertically integrated provider of machinery and cylindrical turbine parts for the power generation, defense and aerospace engine industries.
The US machine tool industry is an industry with annual sales in excess of $30 billion. Upon consummation of the merger, the combined companies will have expected annual sales for 2002 approximately $45 million and an order backlog between $70 and $80 million.
Smith West is operating three state-of-the-art facilities in excess of 32,000 square feet each and has such high profile clientele as GE Aircraft Engine and Honeywell. Moreover, New Century has been experiencing a recent upsurge in new orders from defense and power industry companies, adding to the significant synergies between these two companies.
“Our long standing relationship with Smith West, as a client of ours, will enable us to quickly and efficiently integrate the two companies,” said David Duquette, CEO of New Century Companies, Inc. “This combination places us at the top of list for many new defense and energy projects. The defense and energy industries have recently enjoyed the benefit of obtaining significant government contracts and we are just starting to see that trickle down in to our business. We strongly feel that we will continue to see a material increase in or sales as these companies fully ramp up to meet their commitments.”
About New Century Companies, Inc.
New Century, under its brand name Century Turn, specializes in manufacturing, remanufacturing and retrofitting machine tools, primarily Vertical Boring Mills and large Turning Lathes. New Century maintains a website at www.newcenturyinc.com .