Global Fastener News

Stockman Takes MascoTech Private

John Wolz

An investment group led by former Reagan budget czar David Stockman bought controlling interest in MascoTech, Inc.
MascoTech is the parent company of TriMas Corp.. TriMas holdings include Lake Erie Screw Corp., Cuyahoga Bolt & Screw, Eskay Screw, K-Tech and Monogram Aerospace Fasteners.
MascoTech�s fastener revenues total $168 million of the corporation�s $1.68 billion annual revenue.
Stockman�s Heartland Industrial Partners LC is privately held and will take MascoTech off the NYSE..
The sale price was reported to be about $550 million in cash and assumption of $1.4 billion of debt.
Both Masco Corp. and MascoTech are controlled by Manoogian. Masco Corp., Manoogian and other MascoTech officers will keep a 20% equity stake in the company.
Heartland, based in Bloomfield Hills, MI, and its partners will pay $16.90 a share plus an additional amount based on the sale of certain MascoTech assets. Analysts projected shareholders can expect the final price to be close to $18 per share, up 57% from before the buyout announcement price of $11.50..
The price is about six times earnings before interest, taxes, depreciation and amortization.\