John Wolz

Emhart Fastening Teknologies acquired the assets and ongoing business of Bamal Corporation�s automotive division in Farmington Hills, MI.
Bamal distributes fasteners to automotive manufacturers and Tier One suppliers. Bamal also provides automotive platform management, logistical services and plant management systems.
Emhart CEO Paul Gustafson said Bamal �complements our array of customer services, which range from product design to lineside delivery, to ongoing technical consultancy and after-sales service. This business fits perfectly with our global automotive division.�
Bamal becomes part of Emhart�s global automotive division under president Michael Tyll.
Fastener investment banker Richard Hagan described the Emhart/Bamal deal as �huge� and as significant as the Textron Inc. acquisition of Flexalloy three years ago.
�All of the automotive manufacturers talked with Bamal,� Hagan said.
Hagan, president of New York-based Pinnacle Capital Corp., predicted all automotive fastener manufacturers will partner in some form. �Either you start a distributorship from scratch, form a joint venture or acquire one.�
New Haven, CT-based Emhart is a Black & Decker company that designs assembly technologies. Emhart has annual sales of over $500 million, 3,000 employees and 24 operating facilities, and distribution sites in more than 100 countries.
Bamal was owned by Mike Miller and investors.
IHI to Merge with T-3
Industrial Holdings Inc. has acquired several well-known fastener companies in the past decade, but in the next year the Houston-based corporation hopes to specialize in the energy industry and divest itself of some key fastener holdings.
IHI earlier put its engineered products group up for sale, including Orbitform, American Rivet, Ideal and Landreth. The group manufactures fasteners and specialty metal components for OEMs in home furnishings, automotive and electrical components.
Pinnacle Capital Corporation of New York currently is reviewing numerous offers.
Ameritech, Lonestar Screw, Walker Bolt and GHX are in the stud bolt & gasket group. A&B Bolt is in the energy group.
IHI also announced plans to merge with T-3 Energy Services Inc.
Current T-3 shareholders will acquire control of IHI. T-3�s largest shareholder, First Reserve Fund VIII L.P., will invest an estimated $24.6 million and will work with IHI to refinance the combined company�s debt into a long-term credit facility.
The merger is subject to customary regulatory approvals and is scheduled to close in the third quarter.
CEO Robert Cone said the combined company �will serve the Gulf of Mexico market, providing oilfield manufacturing and aftermarket repair services to a diverse customer base.�
TransTechnology to Divest Again; Will Focus on Aerospace
TransTechnology Corporation announced today that, following a review of alternative strategic initiatives, it would become solely a manufacturer of niche aerospace products.
As a result, the company will divest TransTechnology Engineered Components (TTEC), a manufacturer of spring steel engineered fasteners and headlight adjusters.
The company had previously announced in January that it would seek to divest separately its cold-headed products, aerospace rivet, retaining ring, and hose clamp operations over the next few months, with the proceeds going towards the retirement of its $275 million debt.
TransTechnology CEO Michael Berthelot wants to have all of the divestitures, including TTEC, completed by September 2001 and to have retired substantially all of its debt by that time.
Berthelot explained that during the past year �we have seen a sea change in the domestic automobile and heavy truck manufacturing industries, apart from their current economy-induced slowdowns. It has become clear to us that in order to remain successful as a component supplier to the automotive OEMs, the supplier will have to be of substantial size.�
�We do not believe that, in the current or expected capital markets, we will have the opportunity to reach that necessary size within a reasonable time frame,� Berthelot continued. �As a result, we have decided to change our course and concentrate on our aerospace product businesses, where size is not a prerequisite to continuing success.�
Berthelot expects to present a TTEC divestiture proposal to shareholders this summer.
Berthelot pointed out that TransTechnology�s aerospace business has been a profitable business segment and has grown internally and through acquisitions. Fiscal 2001 will be the sixth consecutive year Aerospace Products will achieve higher annual sales and profits.
TransTechnology manufactures rescue hoists, cargo hooks, and hold-open rods for commercial and military aircraft.
�We have identified substantial growth opportunities by extending our line of actuation products further into the aerospace, defense, and medical instrumentation markets,� Berthelot said. �Our Aerospace Products group revenues have grown at a compound rate of 18% over the past five years, while operating income has grown at a 30% rate. For the first nine months of fiscal 2001 our Aerospace Products revenues were $49.6 million, and operating income was $11.9 million. While fourth quarter and full fiscal 2001 results will not be announced until next month, we expect our Aerospace Products segment to report a substantial increase over the prior year�s fourth quarter and fiscal year.�
�Following the divestiture of the fastener units,� Berthelot said, �We expect to have retired substantially all of our debt, which is currently $275 million, and we expect to reduce our corporate overhead by more than $4 million from its present $8.7 million level. Additionally, for tax purposes we expect to have a significant operating loss carry-forward, which should shelter our future earnings from taxes for several years. We believe that TransTechnology, repositioned as an aerospace products manufacturer with revenues from new equipment sales, maintenance and service of existing equipment, and spare parts sales, will be a significantly more profitable and less leveraged entity, with substantial growth opportunities.�
TransTechnology Corporation is a multinational manufacturer of aerospace products and specialty fasteners with more than 2,300 employees at its 14 manufacturing facilities in the U.S., Canada, England, Germany and Brazil.\
�2001 FastenerNews.com