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"While our resizing efforts for the division were on track, we determined that the motor and amplifier business was no longer strategic to the overall direction of the Company," said Sidney W. Emery, Jr., chairman and CEO of MTS Systems Corporation. "Thus, divesting the division to a major market player results in a win/win situation; for our customers, the Automation Division's employees, Parker Hannifin and MTS. We will continue to focus on our core force and motion control products and markets where we have solid market positions and a breadth of opportunities for profitable growth."
"The custom motor business is one that we have admired for some time, so we're very pleased to add this high-value technology to our portfolio," said Parker Automation Group President Bob Bond. "The MTS product line complements our ability to be a leading automation- solution provider for a broad range of global machine builders. It expands our breadth of our product and channels to market, and enhances our ability to offer highly customized and innovative motion systems for premier customer service."
The Automation Division was reported as part of the MTS Factory Automation Segment. Its fiscal year 2002 revenue was $23.0 million and it had a loss in 2002 as a result of significant restructuring and inventory write-off costs.
The Company expects to have more information regarding the transaction at its upcoming conference call.