ACQUISITION: NYF Going to B/E Aerospace; Crosby, 2 Basners to Retire After Transition

Jason Sandefur

B/E Aerospace Inc. agreed to acquire New York Fasteners Corp. (NYF) for $68 million in cash.\ The deal is expected to close by the end of August.
CEO Roger Crosby announced he would transition to retirement. Andrew Basner, vice president for information systems, and Simon Basner, vice president for quality & process both sons of founder Larry Basner also will stay for the transition and then retire.
Crosby termed the acquisition as a “great marriage. Their fastener division is expert in procurement. We are experts at selling.”
NYF distributes aerospace fasteners and hardware, with more than 70% of its sales derived from the military sector. NYF had revenues of $56 million for its most recent fiscal year ended June 30, 2006. The acquisition will push B/E”s annual military sales above $100 million.
Crosby told FastenerNews.com that the aerospace fastener business has been growing at 20% per year and NYF sales are up 65% in the past six months and 80% in the past month.
With that kind of growth NYF needs cash to expand and B/E has the money to grow the company, Crosby explained.
NYF has become one of the top aerospace fastener suppliers in its field, Crosby said.
B/E CEO Amin Khoury said the “NYF and earlier Draeger [Aerospace GmbH] acquisitions provide us with access to important customers in the large and growing military market, We intend to build upon these strong new customer relationships and, over time, work with them to develop and supply a broader range of products and solutions from across the company.”
B/E plans to merge NYF”s hardware distribution and vendor-managed inventory business with its own distribution operations in Miami.
NYF was founded in 1956 as New York Fasteners. NYF distributes aerospace, military, telecom and industrial fasteners. NYF has branches in Connecticut and Maryland and is headquartered at 599 Valley Health Plaza, Paramus, NJ 07652. Tel: 800 631-1993 Fax 800 786-4561
Crosby, president for 13 years, plans to stay to “help with the transition,” but noted that “there is only one company president” so he will move on. “For now I”m going to retire and travel around the world.”
With the rapid growth at NYF, B/E “is not looking to lay people off,” Crosby said. “They are looking to hire.” �2006 FastenerNews.com