Steel News

U.S. Toolmaker Expects New Marketing Opportunities Through European Acquisition

4/14/2016 - U.S.-based toolmaker Allied Machine & Engineering Corp. has closed on a deal to acquire the remaining interests in its European subsidiary, Allied Maxcut Engineering Co. Ltd. U.K., the company has announced.
Allied Machine, a manufacturer of drilling, reaming, threading and boring tools, bought a 50 percent stake in Allied Maxcut more than 20 years ago to gain a foothold in the European market. Since then, it has served as master distributor of Allied Machine’s products throughout Western Europe, the company said in a statement.

It reached a deal to acquire the remaining half of the business in 2015 and has been integrating the subsidiary, which will now operate as Allied Machine and Engineering (Europe).

The company said the acquisition streamlines Allied Machine’s branding and increases its global marketing opportunities.

“We have had a remarkable 23-year relationship with Allied Maxcut, during which they have done a terrific job of marketing and distribution in Europe,” said Allied executive vice president Steve Stokey in a statement.

“What started as a conversation about supplying Maxcut with spade drill products became a valued business partnership that has greatly benefited both companies. This new chapter opens us up to a global marketing approach that will uncover numerous additional opportunities.”

Allied will maintain its technical support and customer service in Europe. At the same time, distributor networks now will have access to Allied Machine’s full product inventory. Also, Allied Machine’s expanded footprint provides for access to field sales engineers who can work closely with customers on application challenges, the company said.