Jason Sandefur

Textron Inc. signed an agreement to sell Textron Fastening Systems to private equity firm Platinum Equity for $630 million in cash plus assumed liabilities.\Cash proceeds after taxes and transaction costs could rise to $670 million.
TFS will be renamed. Details about the new name and brand image will be announced after completion of the deal, which is expected in the third quarter of 2006.
“This transaction is a win-win for all parties,” commented Textron CEO Lewis Campbell. “Platinum Equity is gaining a world-class business in Textron Fastening Systems, including the most advanced fastening technologies on the market and one of the best management teams in the industry.”
Textron will take an additional after-tax impairment charge of about $120 million related to the sale. The company recorded a $355 million charge when it classified TFS as discontinued operations in the fourth quarter of 2005.
The deal marks Textron”s exit from the fastener business. Textron first entered the fastener industry in 1955 by acquiring Rockford, IL-based Camcar, which was later integrated with fastener manufacturer Elco to create Textron Fastening Systems in 1995.
California-based Platinum Equity has acquired more than 60 businesses with more than $12 billion in revenue since it was founded in 1995 by entrepreneur Tom Gores.
In a press release Gores called the sale process “very competitive” and said TFS is “a great platform for growth in a consolidating market.” Gores also made reference to a “smooth transition” and hinted at “long-term plans to build this business.”
Headquartered in Troy, MI, TFS has annual sales of $1.8 billion, with 9,000 employees at 19 facilities in the U.S. and a total of 20 plants in China, Australia, Austria, Brazil, Canada, France, Germany, Italy, Japan, Korea, Malaysia, Mexico, Singapore, Spain, Taiwan and the UK.
TFS has customers in more than 150 countries.
In December 2005 parent company Textron announced its plan to sell TFS as an intact business. TFS has had to close or sell several plants, including its new $35 million fastener factory in Greenville, MS, plagued by mounting losses from a declining domestic auto industry.
Since September 2005 TFS has sold four facilities: MNP Precision Parts bought the Samuelson Road fastener plant in Rockford; Tinnerman Palnut Engineered Products Inc. bought two U.S. plants; and India-based Sundram Fasteners bought TFS subsidiary viz. Peiner Umformtechnik GmbH, Peine, Germany (Peiner). �2006 FastenerNews.com