4/27/2010
HEADLINES
Fastener Acquisitions Increase As Economy Gains Traction
As the economy improves, fastener acquisitions are picking up.
Economist Brian Beaulieu of the Institute for Trend Research told the spring conference of the National Fastener Distributors Association gathered in San Antonio that now is a good time to acquire other companies.
“Have the visceral fortitude to expand now,” he urged.
Beaulieu predicted the good years to sell your business would occur in 2012 and 2017.
Here are some recent acquisitions in the fastener industry:
Hillman To Be Acquired by Private Equity Firm
Fastener distributor Hillman Companies Inc. agreed to be acquired by Oak Hill Capital Partners in a deal worth about $815 million. The transaction is expected to be concluded in the second quarter of 2010.
Oak Hill, a 24-year-old private equity firm with more than $8.4 billion in its portfolio, is investing in partnership with Hillman’s current management team, led by CEO Mick Hillman, to buy Cincinnati-based Hillman from Code Hennessy & Simmons and certain company management.
“We believe Oak Hill Capital will be a value-added partner because they understand our company and the industry, and they believe in the growth opportunities for our business,” CEO Mick Hillman stated.
Hillman’s publicly traded trust preferred securities will remain outstanding, will not be converted or exchanged, and will continue to trade on the NYSE-AMEX.
Hillman reported 2009 revenue of $482 million. The company closed its distribution center at the Island Park industrial complex in Green Island, NY, in early 2009 in anticipation of a deepening global recession, shifting distribution operations back to its headquarters in Cincinnati.
Hillman had operated in Green Island since early 2003, when it moved its Guilderland distribution operation to a newly constructed 56,000-square-foot building on Cohoes Ave.
Founded as a fastener company in 1964, Hillman is a value-added distributor of over 60,000 SKUs, including fasteners, key duplication systems, engraved tags and related hardware items to over 21,000 retail customers in the U.S., Canada, Mexico and South America. Hillman’s customer portfolio includes Ace Hardware, True Value, Lowe’s, Home Depot, Tractor Supply, Walmart, Menards and Do it Best Corp. Web: hillmangroup.com
Danaher Partners with Cooper Industries
Danaher Corp. and fastener tool maker Cooper Industries are forming a joint venture for portions of their tool businesses, the companies announced.
Danaher’s business, which includes Craftsman and Armstrong tools, and Cooper’s electrical and Apex fastening tools had combined sales of $1.2 billion in 2009.
Both companies get an equal stake in the deal, which is expected to close in the second quarter. The new company will make a $90 million dividend payment to Danaher, “potentially reflecting higher margins on the Danaher side of the business,” Reuters reports.
Danaher Tool Group President Steve Breitzka reportedly will be the venture’s chief executive.
The deal is expected reduce purchasing costs while expanding geographical and market reach and cross-promoting products, the partners said. Web: cooperindustries.com
Active Screw Buys Action Threaded Products
Active Screw & Fastener acquired Action Threaded Products. Active Screw is a sourcing and inventory management company.
Countryside, IL-based Action Threaded Products is a fastener distributor specializing in stainless steel, ferrous, non-ferrous and specialty products.
“Active will enhance many segments of Action Threaded Products and will increase our current customer benefits,”Action president Raul Torres, said. “And likewise, Action will support Active’s growth as a foremost supplier of parts and services to OEMs.”
Active Screw CEO Buddy Blattner said there will be no change in Action’s management or service teams.
Raul Torres will continue as Action president and report to Blattner. Tom Anderson will continue to lead the Action sales team.
Ultimately, we will rename Action to incorporate the Active Screw name and potentially rebrand all of Active to better identify each group’s different activities, but currently, no other changes are planned for Active’s structure, Blattner said.
“This is a thoughtful purchase of a company whose many years of fastener distribution experience and reputation for customer dedication matches ours,” Blattner said.
Active Screw will invest in technology and coordinated sourcing efforts to maximize both companies’ strengths.
Action is located at 5422 Danaher Rd. #5430, Countryside, IL 60625-3126. Tel: 708 482-7644
Founded 65 years ago, Skokie, IL-based Active Screw business is focused on sourcing and inventory management for manufacturing components and suppliers. Web: activescrew.com
EACO Corp. Acquires Bisco Industries
EACO Corp. completed the acquisition of Bisco Industries Inc. for an undisclosed sum.
Founded in 1973, Bisco distributes fasteners and electronic components and fasteners with 37 sales offices and six distribution centers located throughout the United States and Canada.
Bisco supplies parts for products supplied to the aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine industries.
The deal followed a December 22, 2009, agreement among EACO, Bisco and Glen Ceiley, CEO of EACO.
The officers and directors of Bisco will continue in such positions after the merger.
Bisco’s sole shareholder was Ceiley, who now owns over 98% of the outstanding common stock of EACO. Ceiley also owns 36,000 shares of the Series A Cumulative Convertible Preferred Stock of EACO.
Under a management agreement, Bisco handles the day to day operations of EACO and provides administration and accounting services through a steering committee The steering committee consists of Ceiley and certain senior executives of Bisco, including William L. Means, VP of information technology. Web: biscoind.com ©2010 GlobalFastenerNews.com
Related Stories:
• John Perine Co. Merges With Danforth Screw & Bolt
• FIN Review of Fastener Stocks for 2009
• Hillman Deal With Oak Hill Completed
• Trifast Sees Recovery Amid Asian Boom
• Top Ten Fastener Deals of 2009
• NFDA Market Forecast: Key Metals & Other Indexes Up
• Stock Report: CARPENTER TECHNOLOGIES
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