SCHOPFLOCH, GERMANY - The Homag Group reported that its recent acquisition of Stiles Machinery contributed approximately EUR 11 million ($15.1 million)  in revenues while also adding about a EUR 1.5 million ($2.1 million) "burden" to its first quarter net profitability.

Homag became sole owner of Stiles Machinery of Grand Rapids, MI, when it completed the purchase of all voting shares on Feb. 3. The transaction coincided with Stiles Machinery President Peter Kleinschmidt's decision to retire.

Homag said it expects the costs of acquiring and operating Stiles this year will "roughly balance each other out or the effects will place a slight burden on earnings. We anticipate a positive contribution to earnings from the acquisition as of 2015."

“We have acquired the leading sales and service organization for machines and production lines for the US woodworking industry. It is on a growth path, just like the overall US market, said Homag CEO Dr. Markus Filk. "This direct market access allows us to play an active role in the re-industrialization process in the U.S. and benefit from the growth there even more profoundly.”

Homag Group reported that Q1 sales increased nearly 16 percent to EUR 204.8 million ($280,9 million), compared to Q1 of 2013. Filk said even without the EUR 11 million in revenues contributed by the Stiles division, the Homag Group’s sales revenue would have witnessed about a 10 percent increase in the first quarter.

Homag recently reported that its "notebooks bursting with promising new customer contacts and received orders exceeding all expectations" by virtue of its large display at the Holz Handwerk woodworking show held at the end of March in Nuremberg, Germany.