2005 FIN – Heads & Threads Sold in Management Buyout

March 08

00:00 2013

Share it With Friends

FASTENER HISTORY
2005 FIN – Heads & Threads Sold in Management Buyout

January 4, 2005 FIN – Heads & Threads International was sold for $55 million in cash in a management buyout.

Parent company Alleghany Corp. signed an agreement with HTI’s management and Capital Partners Inc. of Greenwich, CT, to sell the fastener supplier. The deal includes all five distribution centers and six warehouses.

The management team includes CEO Greg Brown, CFO Fred Weber and executive vice president Mike Wrenn.

HTI reported revenues for the third quarter of 2004 jumped 36.8% to $41.8 million, while nine-month sales gained 44% to $123.22 million.

Brown told FIN that HTI’s strong performance in 2004 had no influence on the deal.

“The sale was based on Alleghany’s decision that Heads & Threads was not part of its core business plan, Brown explained.

Alleghany primarily handles property and casualty insurance. The company has owned HTI since 1974.

Brown said the only major change to HTI would be replacing its board of directors in the next few weeks.

“Heads & Threads has been around for 51 years now. We believe this will strengthen our position in the fastener industry,” noted Brown. “We are very happy with (the deal).”

In recent years, HTI expanded with the acquisition of Reynolds Fasteners Inc. and Gardenbolt International.

In 2003, HTI reported sales of $113.1 million during a year that saw some restructuring for the company. HTI named Brown to replace outgoing CEO Don Haggerty, who joined HTI when it acquired Reynolds Fasteners.

The company also relocated its headquarters from Sayreville, NJ, to Bloomingdale, IL, that year, along with celebrating its 50th anniversary.

For information on permission to reuse or reprint this article please e-mail: FIN@GlobalFastenerNews.com.

Global Fastener News