Magnetek, Inc. Acquires DDC™ Direct DC Drive Systems Product Line and Patent
MENOMONEE FALLS, Wis. - July 30, 2008 - Magnetek, Inc., (NYSE: MAG) a leading designer and manufacturer of power control and delivery systems for the overhead material handling industry, today announced it has acquired the DDC™ Direct DC Drive product line from Saminco, Inc., Fort Myers, Fla. and the associated DDC technology, patent and intellectual property rights from co-owners Eaton Corporation and Saminco. Magnetek had a brand label supply agreement with Eaton Corporation since 2006 to provide sales, support and service of direct DC drive systems, marketed under the Company’s OmniPulse™ brand name, to the material handling industry.
The crane control systems are used in DC-powered primary metal, foundry and heavy industrial cranes. "Replacing traditional electromechanical controls with digital DC drive technology results in a combined energy and maintenance savings that easily justifies the return on investment," said Perry Pabich, Vice President and General Manager of the Company’s Material Handling business. According to Pabich, industry estimates indicate there are many DC-powered cranes with electromechanical controls in operation, most of which could be retrofitted or replaced with DDC technology during the coming decade. "The acquisition of the DDC digital drive product line and technology provides Magnetek with a unique addition to our controls product portfolio and gives us greater presence in the international crane control market, as the DDC product line has an established distribution network in Europe and South America," said Pabich.
The OmniPulse DDC product line will be manufactured out of one of Magnetek’s three ISO 9001:2000 certified facilities, with continued product development efforts consolidated at the Company’s headquarters in Menomonee Falls, Wis.
Saminco Inc., headquartered in Fort Myers, Fla. is a private, wholly owned company specializing in the design and manufacturing of High Power AC and DC Motor Control products. For more information, visit www.samincoinc.com.
Eaton Corporation is a diversified power management company with 2007 sales of $13 billion. Eaton is a global technology leader in electrical systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has 81,000 employees and sells products to customers in more than 150 countries. For more information, visit www.eaton.com.
Magnetek, Inc. provides a full complement of overhead material handling control solutions including AC and DC drive systems, motors, brakes, conductor bar and festoon systems, radio remote controls, and pushbutton pendant stations. In addition to material handling products, Magnetek manufactures digital power and motion control systems used in people-moving and energy delivery. Headquartered in Menomonee Falls, Wis., in the greater Milwaukee area, Magnetek operates manufacturing plants in Pittsburgh, Pa., and Mississauga, Ontario, Canada, as well as Menomonee Falls.
Director, Marketing Communications
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the effect of the acquisition of the digital DC product line on Magnetek’s business and its position in the material handling industry. These forward-looking statements are based on the Company's expectations and are subject to risks and uncertainties that cannot be predicted or quantified and are beyond the Company's control. These risks and uncertainties include effects of economic, market and operating conditions on the Company and its financial results. Other factors that could cause actual results to differ materially from expectations are described in the Company's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.