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PennEngineering No. 1 on Hagan’s Top Ten Fastener Acquisitions of 2005

May 23
00:00 2006

PennEngineering No. 1 on Hagan’s Top Ten Fastener Acquisitions of 2005

John Wolz

The $300 million acquisition of PennEngineering topped the list of fastener acquisitions as 2005 yielded “a strong pace” of deals, Richard Hagan found in compiling his ninth annual Top Ten Fastener Acquisitions of the Year.

“Deal activity in the worldwide fastener industry continued at a strong pace during 2005, comparable to the level of activity witnessed during 2004,” reflected Hagan, president of NY-based Pinnacle Capital Corp, which specializes in fastener acquisitions.

Tinicum Partners II L.P. acquired PennEngineering for $302 million. Runner up was the $193.3 million acquisition of Air Industries Corp. by Precision Castparts Corp.; the $98.8 million acquisition of Infast Group plc by Anixter International Inc.; and the $92.1 million purchase of Knipping Verbindungstechnik GmbH by LISI.

Hagan found the 2005 fastener acquisitions were fueled largely by “private equity firms which are flush with cash,” such as Tinicum Partners’ PennEngineering deal and Trinity Hunt Partners in its purchase of Lone Star Fasteners. In addition, “several large industry players expanded their product range, customer base and/or market coverage by acquiring strategic targets,” Hagan observed. Among the strategic add-ons were Precision Castparts’ purchase of Air Industries, LISI’s acquisition of Knipping and UMECO’s purchase of Provest.
There were new industry participants as “companies with operations complementary to fasteners entered the fastener business via acquisition,” Hagan added. He cited the purchase of Endries International by Ferguson Enterprises and the Home Depot acquisition of Crown Bolt and Brampton Fastener as examples.

Hagan’s Top 10 List for 2005 in chronological order:
1. In March Precision Castparts Corporation acquired Air Industries Corporation for $193.3 million in cash.

2. Tinicum Capital Partners II L.P. acquired PennEngineering & Manufacturing Corp. in May for $302 million.

3. In its initial entry into the fastener industry, Home Depot Inc. acquired Crown Bolt Inc. and Brampton Fastener Co. Ltd. (Brafasco) in separate transactions for undisclosed purchase prices.

4. In July LISI – Link Solutions for Industry – acquired Knipping Verbindungstechnik GmbH for Euro75.5 million (US$92.1m) in cash.

5. Anixter International Inc. acquired Infast Group plc in July for �54 million (US$98.8m)

6. In July Park-Ohio Holdings Corp. acquired Purchased Parts Group Inc. through its Integrated Logistics Solutions (ILS) business unit for $7.5 million.

7. Ferguson Enterprises Inc. acquired Endries International Inc. in September for an undisclosed purchase price.

8. Trifast plc completed the acquisition of Serco Ryan Ltd. in October for �18 million (US$32m)

9. UMECO plc acquired Italian distributor Provest Srl for �13.8 million (US$24.2m) in October.

10. During December, Trinity Hunt Partners LP acquired Lone Star Fasteners LP for $33.5 million.

Editor’s Note: Additional information on Hagan’s Top Ten Deals will be published in the upcoming annual FIN Review of Fastener Stocks. E-mail:rphagan@pinnaclecapitalcorp.com �2006 FastenerNews.com

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