Global Fastener News

7/29/2009
FEATURE

Pace of deals comparable with 2007

Richard Hagan

Fastener sales may be down but the number of fastener companies being sold continued at a strong pace in 2008, fastener firm acquisition specialist Richard Hagan reported with his 12th annual Top Ten Deals of the Year.

“Most economists agree that the current global recession began during the first half of 2008 and nearly all the fastener companies we follow recorded lower net sales in 2008 compared with 2007,” Hagan noted.

“Despite the severe economic downturn, by our count there were a total of 24 fastener company transactions consummated worldwide during 2008,” the president of NY-based Pinnacle Capital Corporation reported. “This total compares quite favorably to the 27 fastener transactions completed during 2007 and the average of 18 to 22 deals per year over the past eight years.”

In addition, 16 of the transactions were in excess of $20 million. Five deals involved private equity companies.

“While 2008 was a surprisingly strong year for dealmaking in the global fastener industry, we expect that the number of transactions closed during 2009 will be the lowest since we began compiling this list 12 years ago,” Hagan predicted. During the first quarter of 2009 only three deals were completed, he noted.

“There are still fastener company executives and owners who are currently interested in exploring or pursuing deal opportunities, however, an attitude of ‘we want to hunker down and wait to see how the current economic crisis plays out’ seems quite pervasive,” Hagan finds.

2008 – Top Ten Deals of the Year ( arranged in chronological order )

By Richard P. Hagan

Pinnacle Capital Corporation

• Industri Kapital purchased Group Etanco from its founding family. Groupe Etanco manufactures and distributes fasteners and building products for the European construction industry.

• Alcoa Inc. purchased Republic Fastener Manufacturing Corp. and Van Petty Manufacturing of Newbury Park, CA, from The Wood Family Trust.

• B/E Aerospace Inc. purchased the Honeywell Consumables Solutions division of Honeywell International Inc. HCS distributes aerospace fasteners and consumable hardware.

• Anixter International Inc. purchased QSN Industries Inc. and Quality Screw de Mexico SA from their founder. Wood Dale, IL-based QSN manufactures and distributes distributor fasteners for the OEM marketplace.

• Anixter International Inc. purchased Sofrasar SA, Camille Gergen GmbH & Co. KG and Camille Gergen Verwaltungs GmbH (collectively Sofrasar / Gergen) from the Gergen family and management. Sofrasar is based in Sarreguemines, France, and Camille Gergen is based in Dillingen, Germany. The companies distribute fasteners to the French and German OEM marketplace.

• DXP Enterprises Inc. purchased PFI LLC (dba Vertex Distribution) from Watermill Ventures. Vertex Distribution, headquartered in Attleboro, MA, is an importer and stocking master distributor of stainless steel and metric fasteners.

• Capvis Equity Partners AG purchased Koenig Verbindungstechnik AG from Klöckner & Co. SE. Switzerland-based KVT is a stocking distributor of branded fastener products and a manufacturer of a proprietary line of specialty sealing plugs used in hydraulic and pneumatic applications.

• Kohlberg Kravis Roberts & Co. LP purchased Unisteel Technology Limited. Singapore-based Unisteel manufactures fasteners and components for the computer, data storage systems, consumer electronics, telecommunications, audio/video appliance, industrial machinery and automotive sectors.

• Precision Castparts Corp. purchased Airdrome Holdings LLC a privately-owned company, which is comprised of Airdrome Precision Components LLC and AF Aerospace Limited. Long Beach,CA-based APC manufactures hydraulic and pneumatic fittings for the aerospace market. AF Aerospace of Rugby, England, manufactures hydraulic and pneumatic fittings and connectors for the European aerospace market.

• Esterline Technologies Corp. purchased Pomona, CA-based NMC Group, Inc. (dba Nylon Molding Corporation). NMC manufactures injection-molded plastic fasteners for the aerospace, electronics, automotive and general industrial markets. ©2009 GlobalFastenerNews.com

Editor’s Note: For additional information click on the SUBSCRIBE button on GlobalFastenerNews.com or contact Richard P. Hagan, president, Pinnacle Capital Corporation, 130 Water St., Suite 12G, New York, NY 10005. Tel: 212 267-8200

Related Links:

• Contact Richard Hagan