Biesse America Acquires AGM in Charlotte, 60 Percent of Machine

Biesse America recently announced major changes designed to increase its presence in the North American market. The company acquired 100 percent of the distribution and service branch AGM Machinery Inc. in Charlotte, N.C. It has also acquired 60 percent participation of Macchine Srl, a company that designs and manufacturers numerically controlled machinery for processing wood panels for furniture.

Coinciding with Biesse's quarterly One2One educational event, Federico Broccoli, president and chief executive officer (CEO) of Biesse America, shared the news of the acquisitions in a press conference last Thursday.

AGM, which sells machines and tools used to process flat sheets of glass and stone-working machinery, ended its 2006 financial year with a turnover of approximately $30 million USD.

Frank Micalizzi, one of the founders of AGM, along with his brothers Mike and Matthey, will be working alongside Broccoli to implement the new development plan. AGM Machinery is the North American sales agent for all products in the Intermac line.
The new Biesse division will be called Intermac AGM and will begin operations on April 2, 2007.

Broccoli was nominated to serve as president and CEO of the incorporated company and will continue to serve in his current position within Biesse America. Micalizzi will remain part of the Intermac AGM management group.

"AGM is a very successful company leading the stone and glass industry in North America. We are already actively working on a strong business development plan in North America where the ambitions of Intermac are very high. Our first and immediate attention will be given to parts, service and phone support where the experiences and the synergy with Biesse America will immediately benefit our valued customers," says Broccoli.

"It is a profitable and successful company," he says, adding that it currently employs approximately 60 people.
"We didn't want to [change] anything," Broccoli added when asked the reason for the acquisition. "It is simply that Biesse has a strategy and wants control of the chain from design to distribution. That is important in the North American market where service comes first."

Intermac AGM will focus on three investment areas: better territory coverage; the company's software control; and marketing.

"We see the potential in four to five years to double the company-market wise," says Broccoli.
Employees will also be cross-trained in wood and stone and glass segments, Broccoli adds, and an additional CNC specialist will be hired.

According to Broccoli, Intermac AGM will be based in Charlotte, N.C., and Biesse's current facility will undergo an $8 million expansion, beginning in May. The estimated completion date is fall 2009.

In addition, Broccoli announced that Biesse acquired Bre.Ma, a European manufacturer of custom machinery, last August. Enrico Colombo, the company's president, says it makes sophisticated, flexible machines that drill, route and insert. "Our specialization is just-in-time [production]," says Colombo.

"Which is just the opposite of Biesse," says Broccoli.
The majority of Bre.Ma's customers are located in Italy, France and Spain. According to Colombo, prior to the acquisition Bre.Ma did not sell much in North America because it didn't have service capabilities here.
"The potential is in North America-now that we have service [through Biesse]," he adds.

Broccoli says that Biesse wants to grow, and the two ways this happens is organically--through increasing sales internally, or by accelerating and growing through acquisitions.
"As an Italian, I'm very proud that our shareholders understand how important this market [North America] is and are investing in it," says Broccoli.

With Biesse's drive to increase its presence in the North American market, there may be more acquisitions in the future.