Global Fastener News

June 28, 2006 FIN – A new name and brand image seem to be the biggest changes facing Textron Fastening Systems when Platinum Equity closes the $630 million deal to buy the automotive fastener giant. TFS is expected to continue operating from its headquarters in Troy, MI, communications director Tim Weir told FastenerNews.com.

TFS management, led by president Rick Clayton, continues to manage operations. Likewise, there are no current plans to consolidate operations or layoff TFS’ 9,000 employees at 39 facilities around the world, including 19 in the U.S.
“It is our intention that, at the time of the divestiture, all current TFS employees will be transferred to Platinum Equity,” Weir explained.
Once the deal is finalized – most likely during the third quarter of 2006 – TFS will function as a separate business.
“Platinum Equity does not intend to integrate our business into an existing management structure,” Weir noted. “TFS would continue to operate separately, while reporting to an Operating Board established specifically to provide guidance and oversight to the business. TFS management will be part of this board.”
Weir sounded a positive note when he told the Rockford Register Star that “after a decade of consolidations and acquisitions, Textron Fastening Systems officials see promise in the next 10 years.”
Platinum Equity CEO and founder Tom Gores mentioned “long-term plans to build this business” in the press release announcing the deal. Those intentions were echoed by senior vice president Matt Young, who told TheDeal.com that Platinum Equity will look to acquire other businesses “and we hope to build on what Textron has built already.”
Founded in 1995, Beverly Hills, CA-based Platinum Equity is an M&A&O firm that invests in information technology, telecommunications, logistics and manufacturing. The firm owns 18 portfolio companies with total annual revenue of $13.5 billion. The company is listed at No. 18 on the 2005 Forbes Largest Private Companies list.
According to PlatinumEquity.com, the company takes a “managed entrepreneurship” approach with each business it buys, allowing the acquired company to manage the daily operations after growth strategies are defined.
“Platinum Equity does not acquire businesses with a predefined exit strategy; rather it is focuses on the entry strategy. Beginning with a deep appreciation for the employee skill sets and customer relationships, Platinum is intent on nurturing and supporting a company’s growth and enhanced value,” the company states on its website. Web: platinumequity.com

Textron Exits Fastener Business
The sale of TFS marks parent company Textron’s exit from the fastener business. Financial analysts expressed relief that Textron was able to sell TFS to a single buyer, despite the lower-than-expected price of $630 million.
“Analysts say fasteners were a drag on Textron, which also makes commercial and military aircraft along with other products, because of a competitive field and rising costs for raw materials,” the Wall Street Journal reported. ©2006/2013 Fastener Industry News.
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