Jason Sandefur

PennEngineering & Manufacturing Corp. signed an agreement to be purchased for about $330 million in cash by PEM Holding Co., an affiliate of Tinicum Capital Partners II. Under the arrangement, stockholders will receive $18.25 per share for the Danboro, PA-based fastener manufacturer. The transaction is expected to close in the first half of 2005.
The Boards of Directors for PennEngineering and PEM Holding Co. have unanimously approved the transaction.
Tinicum Capital Partners II, L.P. is a New York-based private investment partnership with over $600 million in committed equity capital.
The announcement follows months of industry speculation that PennEngineering would be sold. After disappointing sales in 2002, PennEngineering bounced back in 2003 with 26.5% improvement to $190.7 million in revenues. During the first quarter of 2004, the company reported a 986% jump in overall profit to $5.87 million.
PennEngineering has found production success in its fastener division by converting operations to an innovative mini-factory approach that promotes teamwork among employees and rewards collective initiative.
Founded in 1942, PennEngineering produces self-clinching fasteners, installation equipment, miniature electric motors and other metal products. The company operates facilities in North Carolina, Ohio and Pennsylvania, as well as Europe and Asia. Web: penn-eng.com �2005 FastenerNews.com