Global Fastener News

Precision Aerospace Acquires Freundlich

John Wolz

Precision Aerospace Components Inc. completed the purchase of Staten Island, NY-based Freundlich Supply Company Inc.
Founded in 1940, privately owned Freundlich distributes nut products primarily for aerospace, military and high-end commercial/industrial applications. Mike Freundlich, president for the past 26 years, will remain with the company in his current sales/marketing role.

Precision Aerospace is seeking more aerospace component business. Alex Katz, director of operations and business development, noted that Freundlich is Precision’s “initial presence in the aerospace components marketplace and we intend to aggressively grow this segment via further acquisitions.”
Precision Aerospace is “focused on acquiring distribution companies which supply precision fasteners and related assembly components primarily to the aerospace and military marketplace with the goal of increasing shareholder value and growing free cash flow to the firm.”
The Freundlich acquisition was funded by a capital investment from Barron Partners LP, a $200 million private investment firm, and other investors. Web: barronpartners.com

Midtown Partners & Col. LC advised Precision Aerospace on the acquisition and Pinnacle Capital Corp. advised Freundlich.

“This is a new entry in the aerospace fastener business,” fastener acquisition specialist Richard Hagan of Pinnacle Capital observed. “There is a strong commitment from Barron to put up capital as Precision Capital needs it for deals.”

The three-generation Freundlich company was founded in Brooklyn, NY, by Milton Freundlich. In 1992 the company moved to its current 23,000 sq ft headquarters at 2200 Arthur Kill Rd., Staten Island, NY 10309-1202. Tel: 718 356-1500 or 800 221-0260 Fax 718 356-3661 E-mail: fsco@fresupco.com Web: fresupco.com

Precision Aerospace Components, formerly Gasel Transportation Lines Inc., is traded over the counter as PAOS and is headquartered at 741 Blue Knob Rd., Marietta, OH 45750. Tel: 740 373-6479 Fax 740 373-4260

Previously Katz had formed Fastener Distribution & Marketing Company Inc. to acquire Aero-Missile Components Inc.; Creative Assembly Systems Inc. of Columbus, OH; and Gateway Fasteners Inc. of Pittsburgh. Katz later left FDMC and returned to the fastener business.

Precision Aerospace had been in bankruptcy as the publicly traded ‘shell’ of the previous Gasel Transportation.

Hagan described the aerospace industry as attractive for acquisitions because it is “booked for full capacity for two to five years.” Investors are using that assurance to roll up companies and take out expenses to make a profit. �2006 FastenerNews.com