2002 FIN – Fairchild, Huck Become Alcoa Fastening Systems
December 12, 2002 FIN – Alcoa Inc. completed the acquisition of the assets of Fairchild Fasteners from the Fairchild Corporation.
Fairchild Fasteners manufactures precision fastening systems and components primarily for commercial and military aircraft.
Fairchild will be combined with Alcoa’s Huck into Alcoa Fastening Systems.
The acquisition drops Fairchild out of the fastener industry. The corporation’s Banner Aerospace distributes avionics and related aircraft parts, but not aerospace fasteners.
Alcoa estimates the acquisition will yield $50 million before taxes in synergies over three years and $70 million in reduced working capital through deployment of the Alcoa Business System and shared services.
Fairchild Corporation CEO Jeffrey Steiner said the sale “allows Fairchild to lessen dependency on a single industry, provides funds for new acquisitions and reduces set to $31 million of non-recourse real estate financing and $5 million of other debt.”
COO Eric Steiner told Fastener Industry News that Fairchild plans to use the proceeds for expanding. “Conditions in today’s financial markets, and the economy in general, have made available many growth opportunities. We fully intend to redeploy our cash in those opportunities which will enable us to build a strong industrial company for the long term.”
Fairchild Corporation distributes aerospace parts worldwide and owns a shopping center in Farmingdale, NY.
Fairchild Fasteners’s major customers are Airbus, Boeing, General Electric, Honeywell, Lockheed Martin, Northrup Grumman, UTC, Wesco, Anixter-Pentacon and the U.S. government.
Fairchild Fasteners has 4,600 employees in 15 primary manufacturing facilities in the U.S., Europe and Australia.
Alcoa, best known as an aluminum producer, also produces Reynolds Wrap, Alcoa wheels, Baco household wraps, vinyl siding, closures, precision castings and electrical distribution systems for cars and trucks. Alcoa has 129,000 employees in 38 countries.
Alcoa entered the fastener industry in 2000 with the acquisition of Cordant Technologies Inc. Cordant had owned Huck since 1991. Huck had acquired fastener manufacturers Jacobson Mfg. Co. Inc. in 1998 and Continental/Midland Group in 1999.
During 2001, Alcoa acquired Midwest Fastener Corporation, a privately held manufacturer with plants in S. Holland, IL, and Valparaiso, IN.
Fairchild Corporation may receive up to $50 million more in an earn-out formula based on the number of Boeing and Airbus commercial aircraft deliveries during 2003 to 2005. Web: alcoa.com ©2002/2015 Fastener Industry News.
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