There were 47 fastener company acquisitions in 2015 – the highest number in eight years, according to Richard Hagan of Pinnacle Capital Corp.

Hagan, a consultant specializing in advising fastener companies on acquisitions, said the 47 makes 2015 “the most active year for deal-making over the past eight years … the time period Pinnacle Capital Corporation has been assiduous in tracking all fastener company transactions.”

14845bHagan’s research showed 29 fastener company acquisitions in 2011; 31 during 2012; 29 in 2013; and 41 in 2014.

Hagan annually picks the Top Ten industry acquisitions and found 2015 “not easy” choosing the most important. Hagan’s Top Ten list is not determined by sale price. Instead the principal criteria is “the level of impact each deal is expected to have on the industry and marketplace,” Hagan explained.

“We would typically consider a $25 million deal involving the combination of two competitors / industry-players to be more ‘significant’ than a $200 million deal in which one private equity firm sold a fastener company to another private equity firm.”

 

2015 — Top Ten Deals of the Year

By Richard P. Hagan, Pinnacle Capital Corporation

(Arranged in chronological order)

1) January 2015, Bossard Holding AG purchased Aero-Space Southwest Inc.
Founded in 1982 and headquartered in Phoenix, AZ, Aero-Space Southwest is a fastener and electronic hardware distributor specializing in brand name products and value-added supply chain management.  Aero-Space has branch warehouses in: Anaheim and San Jose, CA; Seattle; Guadalajara, Mexico; and Hong Kong.  Privately-owned Aero-Space employs 65 and generated net sales of $44 million in 2014.
Founded in 1831 and headquartered in Zug, Switzerland, Bossard Group is a fastener and Class C components distributor specializing in supply chain management.  Bossard employs more than 2,000 people at 60 global locations and reported net sales of US$655 million for 2014.  Aero-Space Southwest gives Bossard a highly-desirable authorized distributor for Penn Engineering & Manufacturing Corp.  PEM manufactures self-clinching fasteners and installation equipment for sheet metal fabrication.  Bossard also acquired three PEM distributors in Europe during 2015.  Bossard Group shares are traded on the Swiss Stock Exchange (symbol: BOSN).  Purchase price: Not available

2) March 2015, AVIC International Holding Corp. purchased Align Aerospace Holding Inc.  Align Aerospace is a global distributor of fasteners and assembly hardware, supplying the military and commercial aerospace markets.  Align is headquartered in Chatsworth, CA, and operates a sales / distribution center in Collegien, France, and maintains stocking locations throughout North America, Europe and Asia.  Align Aerospace specializes in supply chain management for aerospace OEMs and tier suppliers.
AVIC International is an investment vehicle of Aviation Industry Corporation of China, a Chinese government-owned aerospace manufacturing and distribution company.  AVIC was formed in 2008 when the Chinese government consolidated most of its aerospace business.  AVIC owns more than 140 operating subsidiaries and employs more than 500,000 people.  AVIC’s mandate is to develop China’s military technologies and civilian / commercial aerospace capabilities.
The seller was Greenbriar Equity Group LLC, a New York-based private equity firm.  Greenbriar Equity purchased Align Aerospace in August 2011 for $185 million.  Purchase price: Not available

3) June 2015, AIP LLC, d/b/a American Industrial Partners, purchased the OEM Supply – Fasteners division (“Anixter Fasteners”) of Anixter International Inc.
Anixter Fasteners is a global distributor of fasteners, assembly hardware and Class C components.  The company specializes in supply chain management in 15 North American, European and Asian countries.  Headquartered in Glenview, IL, Anixter Fasteners maintains 73 branch offices in 11 countries and employs more than 1,900 people worldwide.  In 2014, Anixter Fasteners generated net sales of $938.5 million and EBITDA (earnings before interest, taxes, depreciation & amortization) of $44.8 million.  Following the acquisition, the business was renamed Optimas OE Solutions LLC.  The existing senior management team and the  Glenview headquarters will remain.
American Industrial Partners is a New York City-based private equity firm with more than $1 billion of committed capital under management.  Purchase price:  $380 million

4) June 2015, Herndon Products Inc. purchased MS Inserts & Fasteners Corp.
MS Inserts distributes fasteners and related assembly hardware, primarily for the commercial aerospace market.
Included in the acquisition was Thread Kits Company, a wholly-owned MS subsidiary.  Thread Kits distributes wire thread inserts, solid bushing inserts, solid locking inserts, rivet nuts and thread repair kits.  MS Inserts is headquartered in Torrance, CA, and has warehouses in Sedona, AZ, and Billerica, MA.
Founded in 2003 and headquartered in O’Fallon, MO (near St. Louis), Herndon Products distributes fasteners and assembly hardware, primarily for military and commercial aerospace markets.  Herndon also provides supply chain management.  In 2014, Herndon Products generated net sales of approximately $76 million.  Herndon Products is a portfolio company of HCI Equity Partners, a Washington, DC-based private equity firm.  Purchase price: not available

5) July 2015, Adolf Würth GmbH & Co. KG purchased Northern Safety & Co. Inc., doing business as Northern Safety & Industrial.  Founded in 1983 and headquartered in Frankfort, NY, Northern Safety is a national distributor of personal protective products, safety equipment & supplies and general industrial supplies.  A privately-owned company, Northern Safety operates 19 stocking locations across the U.S. and employs 470 people.  The company generated net sales of $190 million in 2014.
Following the transaction closing, Northern Safety became a business unit of Würth Industry of North America(“WINA”), one of the largest fastener and Class C component distributors in North America.  Northern Safety will continue to operate under the same name and maintain the same workforce and headquarters.  Headquartered in Künzelsau, Germany, Würth Group is a global manufacturer and distributor of fasteners, assembly components and general industrial supplies.  Würth Group employs more than 67,000 people worldwide and generated net sales of €10.1 billion in fiscal year 2014.  Purchase price: not available

6) September 2015, W.W. Grainger Inc. purchased Cromwell Group Holdings Limited.
Founded in 1970 and headquartered in Leicester, England, Cromwell Group is the largest independent MRO distributor in the UK.  A privately-owned company, Cromwell Group supplies industrial products to 35,000 MRO customers in 44 countries on five continents.  Cromwell Group employs more than 2,150 people and operates 67 branches in the UK and continental Europe.  The company generated net sales of £283 million (US$440 million) in the fiscal year ended August 31, 2015.
Headquartered in Lake Forest, IL, Grainger (NYSE: GWW) is North America’s largest distributor of MRO products, with net sales of $10 billion in 2014.  Grainger operates 33 distribution centers and 681 branches around the world and employs approximately 23,600 people worldwide.  Purchase price: £310 million (US$482 million)

7) October 2015, Adolf Würth GmbH & Co. KG purchased Des Moines Bolt Supply Inc.
Founded in 1978, Des Moines-based DM Bolt distributes fasteners and Class C parts, and provides supply chain management.  The privately-owned company operates four branch warehouses in Iowa and Nebraska and employs 95 people.  Following the transaction closing, DM Bolt became a business unit of Würth Industry of North America (“WINA”), one of the largest fastener and Class C component distributors in North America.
Headquartered in Künzelsau, Germany, Würth Group is a global manufacturer and distributor of fasteners, assembly components and general industrial supplies.  Würth Group is comprised of more than 400 companies and employs more than 67,000 people worldwide.  A privately-owned company, Würth Group generated net sales of €10.1 billion in fiscal 2014.  Purchase price: not available

8) November 2015, Optimas OE Solutions LLC purchased Barton Cold-Form Limited.  A privately-owned company located outside Worcester, England, Barton manufactures cold headed, externally-threaded fasteners and made-to-print parts.  Customers include European automotive OEMs and tier suppliers.  Barton employs 70 people and generates annual net sales of £8.0 million (US$12.4 million).
Optimas was formed in July 2015 when American Industrial Partners – a New York City-based private equity firm – purchased the Anixter Fasteners division of Anixter International Inc. (NYSE: AXE) and changed the name to Optimas.  Headquartered in Glenview, IL, Optimas is a global manufacturer and distributor of fasteners, assembly hardware and Class C components. and provides supply chain management for automotive, heavy truck, agricultural machinery, recreational vehicle and power generation industries.  Optimas operates from 74 locations in 15 countries and employs 2,000 people.  Optimas generated net sales of $938.5 million in calendar 2014.  Purchase price: not available

9) November 2015, Keller & Kalmbach GmbH purchased Infinity Fasteners Inc.
Founded in 1990 and headquartered in Lenexa, Kansas, Infinity Fasteners distributes fasteners and Class C parts and provides supply chain management.  The company operates branch offices in: Omaha; Piqua, OH; Fresno, CA; and City of Industry, CA.  Infinity Fasteners employs 35 people and generates annual net sales of $15 million.  Keller & Kalmbach distributes fasteners and Class C components, and provides supply chain management.  A family-owned company, Keller & Kalmbach operates from 20 locations in Germany (10), China (3), Taiwan, Hungary, Czech Republic, Romania, Poland, Italy and Austria.  The company employs more than 700 people worldwide and generated net sales of approximately €250 million in 2014.  Infinity Fasteners is the first acquisition for Keller & Kalmbach in North America.  Purchase price: not available

10) December 2015, CELO S.A. purchased Trident Fasteners Inc.  A privately-owned company located in Grand Rapids, MI, Trident Fasteners manufactures cold headed, externally-threaded fasteners for the automotive, transportation, furniture, appliance and construction markets.  The company has 40 employees producing a broad range of screw and bolt types in diameters from 4-40 to 7/8 inch.
Founded in 1963 and headquartered in Barcelona, Spain, CELO Group manufactures and distributes screws and anchors for construction and general industrial applications.  The company operates three manufacturing plants in Spain, Germany and China, along with five distribution warehouses in France, Hungary, Poland, Turkey and Mexico.  A family-owned company, CELO Group employs a total of 250 people worldwide (before the Trident Fasteners acquisition).  Trident Fasteners is the first acquisition for CELO Group in North America.  Purchase price: not available

For further details on these transactions or additional information about the specialized investment banking services provided by Pinnacle Capital Corporation, contact president Richard P. Hagan, 82 Nassau St, Suite 352, New York, NY 10038.  Tel: 212 267-8200  Email: rphagan@pinnaclecapitalcorp.com  All contacts and inquiries will be held in strictest confidence.