9/9/2014 5:31:00 PM
HEADLINES
Fastener Acquisitions From Abroad Abound
Acquisitions are nothing new in the fastener industry, especially when markets are improving.
What distinguishes recent industry acquisitions seems to be geography: Asian and U.S. fastener firms acquiring European automotive fastener companies at a time of record auto builds.
Here is what has happened with M&As in recent weeks.
PennEngineering Acquires Germany-Based PROFIL
PennEngineering acquired PROFIL Verbindungstechnik (Friedrichsdorf, Germany). Terms were not disclosed.
PROFIL will continue to operate as a separate company under the PennEngineering corporate umbrella and the PROFIL brand of mechanical hardware will remain unaffected.
PROFIL’s management team will remain in place, led by CEO Frank Grunow and CFO Petra Michels, who will report to PennEngineering CEO Mark Petty.
Both companies anticipate no change in operations, facilities, and employees.
In a joint press release, the companies said they “will benefit from PROFIL’s strengths in the European automotive market and PennEngineering’s strong presence in North America and China.”
“The acquisition of PROFIL significantly enhances the combined company’s fastener installation system engineering, technology and service, offering globally some of the most advanced and reliable installation equipment available.”
Founded in 1965, PROFIL develops nuts and studs that are fastened to metal-shaped parts by a riveting, piercing, or pressing process. PROFIL is a system supplier with in-house design for automated feeding and installation equipment. All major European automobile manufacturers and their suppliers are among PROFIL’s customers.
Founded in 1942, PennEngineering has manufacturing and sales facilities in North America, Europe and Asia and is headquartered at 5190 Old Easton Rd., Danboro, PA 18916-1000. Tel: 215 766-8853 Web: pemnet.com
For more on PennEngineering, visit Fastener History on GlobalFastenerNews.com for “2005 FIN – Private Equity Firm to Acquire PennEngineering.”
Taiwan Firm Acquires German Fastener Co.
Taiwan-based QST International Corp. agreed to acquire an 85.71% stake in German fastener manufacturer ESKA Automotive GmbH for an undisclosed sum.
The acquisition will happen indirectly through investments in two equity firms and Boltun Europe Holdings GmbH& Co. KG.
According to its website, the companies of ESKA Group were owned by CEOs Klaus Gruber and Winfrid P. Stoffel, who decided to sell their shares to the Taiwanese group Boltun/QST.
“With this decision we are making an essential step in view of the globalization activities of our customers,” the owners stated on ESKA’s website.
The change of ownership took place on August 4.
Founded in 1881 as Saxon Screws and Nuts Factory in Chemnitz, ESKA Automotive has 391 employees producing fasteners at facilities in Chemnitz and Bärenstein. Web: eska.net/en
Boltun /QST Group is a Taiwanese fastener manufacturer with 3,000 employees worldwide. In addition to locations in China and Taiwan, the Group serves the markets in the U.S., Thailand and Germany. Web: boltun.com.tw and qst.com.tw
SPS Technologies Buys Coatings Business
SPS Technologies acquired UK-based KG Coating for $3.8 million, the Insider reports.
Founded in 1994, KG Coating applies aluminum and polymer coatings for aerospace manufacturers. Web: kgcoating.co.uk
SPS reportedly beat out four other bidders from the U.S., the Netherlands, India and France.
Guy Haynes of KBS Corporate, which assisted on the deal, said KG Coatings owner had purchased the business in 2013 “and decided to investigate the option of selling after noticing improving market conditions within the aerospace industry,” according to the Insider.
SPS, a Precision Castparts Corp. company, designs and manufacturers aerospace fasteners. Web: spstech.com
Hillman Buyout Deal Completed
Hillman Companies’ management team and CCMP Capital Advisors LLC closed a deal to acquire controlling interest in Hillman from Oak Hill Capital Partners. CCMP is investing with Hillman’s management team, led by CEO Jim Waters.
Oak Hill Capital and affiliates will retain a “significant minority interest” in Hillman, according to a Hillman press release.
The deal, announced in May, valued Hillman at $1.475 billion.
CCMP is investing with Hillman’s management team, led by CEO Jim Waters.
Founded in 1964 as a fastener and keys company, Hillman supplies products for commercial and residential products for the hardware and home improvement industry.
Hillman offers 130,000 SKUs in categories including fasteners, key duplication systems, letters, numbers and signs, engraved tags, builder’s hardware, and the recently added nail, deck and drywall category to 26,000 retail customers in the U.S., Canada, Mexico, South America and Australia. Customers include Ace Hardware, Do it Best Corp., Home Depot, Lowe’s, Menards, Petco, PetSmart, RONA, Tractor Supply, True Value and Walmart.
In 2013, Hillman acquired Canadian fastener manufacturer H. Paulin & Co. Ltd. for $103.4 million.
CCMP specializes in middle market buyouts and growth equity investments of $100 million to $500 million in North America and Europe. Investments under management include: Aramark Corporation, Chaparral Energy, Infogroup, Jamieson Laboratories, Jetro Holdings, LHP Hospital Group, Milacron, Newark Energy, Ollie’s Bargain Outlet and Pure Gym.
Hillman’s shares will remain outstanding, will not be converted or exchanged and will continue to trade on the NYSE-AMEX.
Anixter Funds Tri-Ed Acquisition
Anixter International closed on a $200 million term loan utilizing the incremental facility available under its senior unsecured revolving credit agreement signed in 2011.
“The proceeds from the incremental facility are expected to be used to fund a portion of the planned acquisition of Tri-Ed Security Products,” the company stated.
In early August Anixter agreed to acquire Tri-Ed, a distributor of security and low-voltage technology products, from Audax Group for $420 million. Web: anixter.com
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