2/17/2015 11:57:00 AM
HEADLINES
Anixter Selling Fasteners Division for $380 Million

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Anixter Fasteners History
From the Stock Review section of GlobalFastenerNews.com:

   Anixter began building its fastener business in 2002 by acquiring Pentacon for $111.4 million. After Pentacon, AFS bought Walters Hexagon in 2003, DDI in 2004, Infast in 2005 and MFU in 2006. 
   In 2007 Anixter bought UK aerospace fastener distributor Eurofast SAS for $27 million and fastener distributor Total Supply Solutions for $8 million.
   In 2008, Anixter paid a combined $78.8 million to acquire two fastener operations: Wood Dale, IL-based QSN Industries Inc. and sister company, Quality Screw de Mexico SA and $20.7 million for Sofrasar SA of France and $19.4 million for Germany-based Camille Gergen.
   In 2009, Anixter Pentacon and Anixter Eurofast were combined into Anixter Aerospace Hardware. The Chatsworth, CA-based division had facilities in Texas, Canada, the UK and France.
   Two years later, Anixter sold its Aerospace Hardware Division — primarily threaded fasteners — for $185 million.

Anixter International agreed to sell its OEM Supply – Fasteners segment to American Industrial Partners (AIP) for $380 million in cash. The deal, which was approved by Anixter’s board of directors, is expected to close during the second quarter of 2015.

The announcement followed the January news that Anixter was auctioning its Fasteners segment. At least one analyst estimated the business would fetch as much as $500 million.

The Fasteners segment is a global distributor and manufacturer of highly-engineered fasteners for customers in the heavy truck, power train, luxury automotive, agriculture, construction, recreational vehicles and other verticals. OEM Supply – Fasteners serves customers in 15 countries, and the average relationship among its 10 largest customers exceeds 17 years. The business reported 2014 revenues of $938.5 million and operating profit of $39.1 million.

The Fasteners business includes 73 distribution centers, 12 quality labs and more than 1,900 employees worldwide. 

Upon closing, Fasteners will continue to be led by its current management team, with Ian Clarke assuming the role of President and CEO of the new company. The company’s headquarters will remain in Glenview, Illinois, and the name of the new company will be announced upon closing.

“I am confident that we have found the right partner in AIP, who brings deep operating and industry expertise as well as additional financial resources, which will enhance our ability to meet the needs of our customers and capitalize on global growth opportunities,” said Ian Clarke, Executive VP – Fasteners at Anixter.

AIP partner Eric Baroyan added: “With deep, long-standing customer relationships, strong management, a highly customized product portfolio and significant global growth opportunities, Fasteners is well-positioned to accelerate its business performance. We are fully supportive of their strategic plan, and look forward to collaborating with their talented team to build long-term value for customers, suppliers and employees.”

AIP has also offered to acquire the portion of the Fasteners business in France that has historically supported Fasteners’ global business.

Goldman, Sachs & Co. served as financial advisor.

Founded in 1989, AIP is a middle-market private equity firm that invests in North American-based industrial businesses serving domestic and global markets. To date, AIP has completed over 50 transactions and is currently managing more than $1.1 billion in equity capital. 

Click on the Fastener History section of GlobalFastenerNews.com for more on the Anixter story:

 

1998-2002 FIN – History of Pentacon Inc.

1998-2005 FIN – History of Distribution Dynamics

2002 FIN – Billionaire Zell’s Fastener Past & Future

2003 FIN – Anixter Acquires UK Fastener Distributor Walters Hexagon

2007 FIN – Anixter Continues European Acquisitions

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Related Links:

• Anixter Fasteners