12/10/2014 1:37:00 AM
NEWS BRIEFS
TriMas Making Fasteners A Core Business
Weeks after acquiring Allfast Fastening Systems for the “astonishingly high price” of $340 million, TriMas is looking to focus on its core businesses by spinning off Cequent, its towing, trailer cargo management business, into its own company.
The plan calls for Cequent to operate as an independent, publicly held company. The Cequent businesses generated revenue of approximately $614 million – 42% of TriMas revenue – in the aggregate for the trailing 12 month period ended September 30, 2014.
This transaction is expected to be completed during mid-2015.
TriMas CFO Mark Zeffiro will become CEO of the new entity.
Excluding Cequent, TriMas generated revenue of approximately $855 million in the trailing 12 month period ended September 30, 2014, and will continue to be led by CEO Dave Wathen.
“Over the past five years, we have transformed TriMas from a leveraged holding company into a diversified, global manufacturer of engineered and applied products with a track record of consistent growth and operating results,” Wathen explaiend.
“We believe the spin-off will provide both companies greater flexibility to focus on their distinct growth and margin improvement strategies within their respective core markets, enabling them to further improve competitiveness and create significant value for shareholders, customers and employees.”
TriMas’ common stock will continue to be listed on NASDAQ under the symbol “TRS” and the company will remain headquartered in Bloomfield Hills, MI.
Post separation, TriMas expects to have a higher growth and margin profile and will be a more focused, diversified engineered products company, consisting of the current Packaging, Aerospace, Energy and Engineered Components segments.
TriMas’ Aerospace segment, which consists of Allfast, Monogram Aerospace Fasteners, Mac Fasteners, and Martinic Engineering, achieved a 6.1% increase in Q3 sales to $27.4 million, primarily due to the results of the acquisition of Mac Fasteners in October 2013. Segment operating profit fell 39% to $3.9 million.
Nine-month Aerospace segment sales rose 27% to $86.4 million, while operating profit slipped 9% to $14.4 million.
Related Stories:
• U.S. Fastener Activity Strengthens in October
• B/E Aerospace Spinning Off Fastener Business
Related Links:
Share: