MISCOR Group Acquires California-based Visalia Electric Motor Shop
Expands Wind Generation Repair Capabilities, Geographic Reach
South Bend, Indiana, September 24, 2008 - Industrial services provider MISCOR Group, Ltd. (OTC BB: MIGL) today announced it has acquired the business and assets of Calif.-based
Visalia Electric Motor Shop Inc, a leading repair, maintenance and overhaul provider for
mission-critical motors and generators. Visalia serves an extensive roster of industry-leading
customers in 14 Western states.
MISCOR (www.miscor.com) said the addition of Visalia will significantly expand its wind
generation repair and maintenance capabilities of the Company’s Magnetech Industrial Services
subsidiary, which is part of MISCOR’s Repair, Remanufacturing and Manufacturing division.
Bernie DeWees, President of Magnetech Industrial Services, indicated that the Visalia facility
will now support all field service and in-shop repairs in the Western United States – home to the
largest concentration of wind turbines in the world. With this acquisition, Magnetech now has
nine locations nationwide.
“This acquisition helps cement our growing geographic service reach on the West Coast and will
enable us to further expand our wind-related customer base while adding new customers to our
core industrial services business,” said John Martell, CEO of MISCOR. “With a growing
presence on both coasts and an industry-leading management team located in America’s
heartland, our strategic growth model continues to propel us toward becoming the nation’s
industrial services provider of choice.”
MISCOR said the Visalia acquisition will also expand the Company’s ability to provide repair
and maintenance services to municipalities, independent power producers, refineries, and mining
and other heavy industrial customers on the West Coast. The Company added that it will support
and build on Visalia’s utility and heavy industrial customer base, which will provide an excellent
complement to MISCOR’s existing customer base.
Visalia President Gene Quesnoy said: “I am pleased to combine Visalia’s business with
MISCOR, as they bring a great deal of experience, institutional knowledge and growth potential
to the table. In addition, their dedication to the same high standard of ethical service that has
distinguished Visalia for more than 60 years puts our combined operations in a prime position to
continue growing our market share in the increasingly competitive Western region.”
MISCOR said Quesnoy will remain with the Company where he will focus his efforts on
Visalia’s technical sales and engineering support functions. Quesnoy has served as president of
Visalia for the past 26 years, during which time he spearheaded a number of growth initiatives,
technological investments and led Visalia’s move into its current 27,000-square-foot facility. He
will report to Bernie DeWees president of Magnetech Industrial Services.
In addition to offering repair and maintenance services to the growing wind generation industry,
Visalia provides a wide variety of additional services, including the engineering and design of
electric motors and generators, failure analysis, manufacturing form coils, performing welding
services, and offering a full machine shop with 60” swing-capable lathes and 50-ton crane
capacity.
The business in California will operate as Magnetech Industrial Services, Inc also dba Visalia
Electric Motor Service.
About MISCOR
South Bend, Ind.-based MISCOR Group, Ltd. (OTC BB: MIGL) provides electrical and
mechanical solutions to industrial, commercial and institutional customers through two
segments: RRM (repair, remanufacturing and manufacturing) segment, which provides
maintenance and repair services for industrial motors, generators and lifting magnets, and diesel
engine component manufacturing, remanufacturing and repair services; and CES (construction
and engineering services) segment, which provides a wide range of electrical and mechanical
contracting services and engineering and repair services for electrical power distribution systems.
In 2007, MISCOR entered the wind power industry through its acquisition of 3-D Service, Ltd.,
providing both onsite and in-shop maintenance and repair services for wind farms. MISCOR
was ranked on the Inc. 500 in 2004 and 2005 and has grown to more than 700 employees in 15
locations nationwide.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the safe harbor
provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as“anticipates,” “believes,” “estimates,” “expects,” “intends,” “should,” “could,” “will,” or variations
of such words and similar expressions are intended to identify forward-looking statements. These
forward-looking statements reflect the Company's views, expectations and beliefs at the time such
statements were made with respect to such matters, and may cover such items as the Company's
future plans, objectives, events, contract pricing and results such as revenues, expenses, income,
earnings per share, capital expenditures, operating margins, financial position, expected results of
operations and other financial items. There are a number of factors, many of which are beyond the
Company's control, which could cause actual results and outcomes to differ materially from those
described in the forward-looking statements. Forward-looking statements are not uarantees of
future performance and involve certain risks, uncertainties and assumptions (“Risk Factors”) that
make the timing, extent, likelihood and degree of occurrence of these matters difficult to predict.
Risk Factors include, among others: price of raw materials, ability to win and service competitively
priced new contracts in sufficient amounts to operate and expand effectively, employee turnover,
ability to compete in highly competitive, geographically diverse marketplaces, and varying and
sometimes volatile economic conditions. For further discussion of risks and uncertainties,
individuals should refer to the Company's SEC filings. MISCOR Group, Ltd. undertakes no
obligation and does not intend to update these forward-looking statements to reflect events or
circumstances occurring after this press release is issued. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date of this press release.
All forward-looking statements are qualified in their entirety by this cautionary statement.
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CONTACT:
Rich Mullin, CFO
MISCOR Group, Ltd.
(574) 234-8131
Karen Keller , Patrick Kane
Lambert, Edwards & Associates, Inc.
(616) 233-0500 pkane@lambert-edwards.com
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