9/6/2011 1:18:00 PM
HEADLINES
Fastener Mergers & Acquisitions Kick into High Gear
Fastener industry M&A’s are in high gear at present, with several prominent companies changing hands in recent weeks.
Companies include some of the biggest names in the industry — ITW, Anixter, Grainger, Fabory and Elgin Fastener Group.
Consolidations and expansions are also on the rise, with ITW leading the way. The Glenview, IL-based conglomerate said it would integrate two of its Midwest industrial fastener divisions — ITW Bee Leitzke and ITW Shakeproof — into a single entity called the ITW Shakeproof Group, with five facilities in Illinois and Wisconsin.
Grainger Completes Fabory Acquisition
W.W. Grainger Inc. completed its acquisition of Netherlands-based fastener distributor Fabory Group for about $344 million.
“We are delighted to complete this acquisition so promptly and to officially welcome the Fabory team to Grainger,” said Court Carruthers, president of Grainger International. “We look forward to working with Fabory leadership to accelerate their branch and product expansion plans while leveraging their expertise as a fastener specialist to benefit all of our businesses.”
Fabory sells 80,000 products to 120,000 customers from 110 locations in 14 countries, with projected 2011 revenue of $350 million.
The acquisition of Fabory, first announced on August 15, gives Grainger a presence in the world’s largest MRO market with an established business.
Fabory is expected to continue operating as a separate business, keeping its name and brand. Fabory Group CEO Oswald van den Belt will continue to run the company, reporting to Carruthers.
Europe-based Fastener+Fixing magazine reported Fabory Masters in Fasteners, formerly known as Borstlap, was founded in 1947 by J.M. Borstlap and his sons, Karek and Joop.
In 2004 ABN Amro Capital acquired the group from the Borstlap family.
In 2007 AAC sold it to HgCapital for €345 million (US$498m).
Fabory 2009 sales were €220 million (US$317m). U.S. media reported 2010 sales at €210 million (US$300m).
Fabory employs 1,600 people and is headquartered in Tilburg, the Netherlands.
In Europe, Fabory has a chain of distribution centers in addition to its central warehouse in Tilburg and a warehouse in Czech Republic servicing eastern European branches. Fabory also operates in the U.S., Canada and China. Web: Fabory.com
With 2010 sales of $7.2 billion, Lake Forest, IL-based Grainger distributes industrial maintenance and safety supplying 1.8 million customers in the U.S., Canada, Mexico and China through more than 600 branches and 18 distribution centers. Web: grainger.com
Elgin Fastener Group Bought By Boston Investor
Audax Group acquired Elgin Fastener Group for an undisclosed sum.
Headquartered in Versailles, IN, EFG is a manufacturer of short-run specialty fasteners for niche industrial end markets. EFG manufactures cold-headed, long-length, small diameter fasteners; cold formed, close tolerance, high precision threaded fasteners; and semi-standard specialty fasteners through its Ohio Rod Products, Chandler Products, and Leland Powell Fasteners divisions.
“We now have the additional capital and resources for our next stage of growth,” stated EFG president Jeff Liter. “(Audax Group’s) operational expertise and successful track record sourcing and integrating add-on acquisitions will be key assets as we continue to build our company.”
“EFG is a niche manufacturer of high-quality specialty products in a fragmented industry with longstanding customer relationships,” stated Audax co-CEO Geoffrey Rehnert. “We look forward to working with Jeff Liter and his management team to build the company through product introductions, expanding into related markets, and strategic add-on acquisitions.”
EFG’s new ownership comes soon after the fastener manufacturer made its own acquisition.
In March EFG acquired Kansas City, MO-based Silo Fasteners. Established in 1990, Silo Fasteners provides fasteners for highway construction, concrete form, and general distribution. EFG relocated Silo’s machinery and selected production personnel to their Ohio Rod Products facility in Versailles.
EFG has four ISO certified domestic specialty fastener manufacturers – Ohio Rod Products, Leland Powell Fasteners, Chandler Products and Precision Screw & Bolt, plus Best Metal Finishing and the engineering and international procurement division Elgin Fasteners International.
Founded in 1999, Audax invests in lower-middle market companies. The group has offices in Boston and New York and manages more than $4.8 billion of equity, mezzanine debt, and senior loan capital. Web: audaxgroup.com
Elgin entered the fastener industry in 1987 with the acquisition of Chandler Products, Cornell Mfg. Products Inc., Ohio Rod Products and Fasteners Inc. For the complete company history, visit Fastener History on GlobalFastenerNews.com.
Anixter Sells Aerospace Division to Private Firm
Anixter International Inc. entered into an agreement to sell its Aerospace Hardware Division to entities controlled by Greenbriar Equity Group LLC.
The deal will pay Anixter $155 million in cash upfront, plus as much as an additional $30 million if certain milestones are achieved by December 31, 2013.
Anixter’s Aerospace division supplies U.S., European and British externally threaded aerospace fasteners to both standard and OEM specifications. Among its products are bolts, wrenchable nuts and nut plates, screws, high-tensile fasteners, and studs as well as an inventory of Boeing and Airbus standards covering both commercial aircraft and military programs.
Anixter CEO Robert Eck said the sale captures a “fair value” for the division and allows his Glenview, IL-based company to focus on core operations and strategic initiatives.
“Our performance in Aerospace Hardware has been strong since first entering the business through our 2002 Pentacon acquisition, having achieved first half 2011 revenues of approximately $94.1 million and EBITDA of $12.0 million,” Eck stated.
“However, customer and supplier consolidation has resulted in a business model that is distinctly different than our overall model. Despite the fact that Aerospace has historically delivered operating margins in excess of our corporate average, current high working capital requirements have impacted its return on tangible capital compared to our other businesses; therefore this division is no longer strategically aligned with our overall business.”
Greenbriar managing director Noah Roy indicated that the current management of the aerospace division would continue to lead its operations.
In the third quarter of 2011, Anixter will report the results of this business as “Discontinued Operations” and all prior periods will be restated to reflect this classification.
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.
Rye, NY-based Greenbriar is a private equity firm with $1.5 billion of committed capital, focusing on the global transportation industry, including companies in aerospace and defense, freight and passenger transport, automotive, logistics, and related sectors.
ITW Merges Midwest Fastener Divisions
Illinois Tool Works has integrated two of its Midwest industrial fastener divisions — ITW Bee Leitzke and ITW Shakeproof — into a single entity called the ITW Shakeproof Group, with five facilities in Illinois and Wisconsin.
“These two divisions have a long and rich history in their respective markets,” stated new group GM Phil Johnson. “While they have operated as separate brand entities, over time they have serviced similar markets, manufactured similar industrial products, and shared customers.”
Johnson noted the new name reflects the heritage of the various brands.
“Over time, ITW has grown and acquired a group of industrial businesses. The brand names are important to us, and in communications with customers, we learned that the names are still important to our customers.”
The Shakeproof Group&
rs quo; ;s long term goals is to enable customers to contact one facility for Bee Leitzke, Mellows and Shakeproof Stampings product lines.
“With Bee Leitzke and Shakeproof sharing common markets like agriculture, heavy truck and equipment, pole line, outdoor power equipment, appliance, and railroad, it seemed natural for us to bring the two businesses together. We are excited about working towards arming customers with the ability to have one direct contact for the complete off the shelf standard product side of our business,” Johnson added.
Shakeproof Alpine, a custom threaded screw manufacturer, will continue to operate individually within the Shakeproof Group.
Shakeproof’s history dates back to 1923 when ITW launched it as the first line of manufactured products from its tool making business. Shakeproof invented stampings for machinery that resisted vibration and loosening. Shakeproof’s inventions of Tooth Lock Washers, Spring Washers, and Square Cone Washers quickly became industry standards.
In 1991 ITW purchased the Mellowes Helical Lock Washer facility in Milwaukee, WI, to compliment the stamping products business.
ITW Bee Leitzke was established in 1929. Known as the “pin people”, Bee Leitzke manufactures cotter, clevis and hitch pins for industrial markets. ITW purchased Bee in 1996 and the current company resulted from the merger of three prominent fastener manufacturers: Medalist/Rein Leitzke, Bee Industries, and Hobbs Fasteners.
Bee Leitzke’s manufacturing facility is located in Watertown, WI, and the warehousing and administration office is located in Iron Ridge, WI.
Nord-Lock Acquires Superbolt and P&S
Sweden-based Nord-Lock International AB acquired Superbolt Inc. of the U.S. and Swiss company P&S Vorspannssysteme AG.
Superbolt and P&S offer products for critical bolting applications and the products are used in heavy industries such as offshore, energy and mining.
Like Nord-Lock, Superbolt and P&S have developed products to provide maximum security.
“The acquisition of Superbolt and P&S is another giant step forward in our vision to be the undisputed global leader in bolt securing” says Nord-Lock managing director Mikael Helmerson.
Superbolt president Robert Steinbock said the “synergies between Nord-Lock and Superbolt are the best we have seen of all the companies that we have ever considered joining with.”
Headed by Steinbock and vice president Allan Steinbock, Superbolt supplies bolting products, including nut-style tensioners, bolt-style tensioners, expansion bolts, studs, flexnuts, thrust collars, custom tensioners and lubricants.
Superbolt reports 2,500 customers worldwide. Superbolt has facilities in North and South America, Europe, Asia and Africa and is headquartered 1000 Gregg St. (P.O. Box 683) Carnegie, PA 15106. Web: Superbolt.com
Roman Germann, CEO for P&S, pointed out that “Nord-Lock and Superbolt are active in the same sectors and our products are often used in the same challenging conditions.” Web: p-s.ch/
Founded in 1982, Nord-Lock manufactures securing systems for bolted joints, with facilities in Europe, Japan and the U.S. Web: nord-lock.com
UK Firm To Acquire Reid Supply
England-based Filtrona plc signed an agreement to acquire Reid Supply Co. for as much as $32 million.
Muskegon, MI-based Reid Supply distributes fasteners and other standard industrial components throughout the U.S. and 57 other countries, and will become part of Filtrona’s Protection & Finishing Products (“PFP”) division.
“These products … enhance PFP’s offering both in the U.S. and Europe, with Reid Supply’s customers also gaining access to PFP’s U.S. distribution network and product range,” stated Filtrona CEO Colin Day.
Founded in 1948, Reid Supply supplies fasteners and other standard industrial components to manufacturing, CAD and engineering, transportation construction, food processing, packaging, energy, government, aerospace and medical markets. Web: reidsupply.com
Filtrona is headquartered in Milton Keynes, England, and supplies speciality plastic and fibre products. Web: filtrona.com
SBS Industries Acquired By Gladstone
Gladstone Investment Corp. partnered with management to acquire SBS Industries through a capital combination of senior debt, preferred equity and common equity. Terms were not disclosed.
Founded in 1975, Tulsa, OK-based SBS manufactures and distributes specialty fasteners and threaded screw products.
Gladstone is a publicly-traded business development company that invests in small and mid-sized businesses in the U.S. Web: gladstonecompanies.com
Lincoln Structural Buys Heartland Water Jet
Lincoln Structural Solutions acquired Heartland Water Jet Cutting & Manufacturing to expand its nuclear fastener manufacturing capabilities.
Omaha, NB-based Lincoln Structural, a part of Owen Industries, manufactures fasteners for the nuclear and construction markets. The company employs 14.
Heartland Waterjet, also a Omaha company, has been in manufacturing engineering for machining and fabrication, machine design, industrial controls and factory automation for more than 20 years.
“We have a lot of customers who do nuclear fabrication that have major restrictions on what comes into contact with stainless,” Lincoln VP Tyler Owen told the Omaha World-Herald. “They can’t use just anybody to sell smaller pieces of stainless.”
Heartland Waterjet was owned by John Price and is located at 15225 Industrial Rd., Omaha, NE 68144. Web: heartlandwaterjet.com
Owen Industries also runs Paxton & Vierline Steel. Founded in 1992, Lincoln Structural manufactured structural fasteners for commercial and bridge fabricators. Web: lincolnstructural.com
Max Mothes GmbH Assets Sold to Investor
The assets of insolvent European fastener supplier Max Mothes GmbH were sold to Schuering & Andreas for an undisclosed sum, Fastener+Fixing magazine reports.
Mothes reportedly had continued to trade during insolvency proceedings, which began in April 2011, and most of the company’s 230 employees are expected to be retained.
Mothes’ site in Neuss, Germany, which houses a distribution center and manufacturing facility for special fasteners, was included in the deal.
Founded in 1918, Max Mothes had sales of EUR 42 million in 2010 and carries more than 80,000 stock lines.
Max Mothes supplies special and standard fasteners service customers in Europe and overseas with approximately 4,000 customers in the German machinery, truck and agricultural equipment and power generation industry.
Schuering & Andreas is a group of entrepreneurs active in four companies with 13 production facilities, more than 1,100 employees and an annual turnover of EUR 150 million. The group acquired Honsel Unformtechnik from administration in 2002 and also owns VVG Befestigungstechnik GmbH & Co. Web: maxmothes.de ©2011 GlobalFastenerNews.com
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