Global Fastener News

TransTechnology to Divest Fastener Businesses; Will Focus on Aerospace

John Wolz

TransTechnology Corporation announced today that, following a review of alternative strategic initiatives, it would become solely a
manufacturer of niche aerospace products.
As a result, the company will divest TransTechnology Engineered Components (TTEC), a manufacturer of spring steel engineered fasteners and headlight adjusters.\
The company had previously announced in January that it would seek to divest separately its cold-headed products, aerospace rivet, retaining ring, and hose clamp operations over the next few months, with the proceeds going towards the retirement of its $275 million debt.
TransTechnology CEO Michael Berthelot wants to have all of the divestitures, including TTEC, completed by September 2001 and to retired substantially all of its debt by that time.
Berthelot explained that during the past year “we have seen a sea change in the domestic automobile and heavy truck manufacturing industries, apart from their current economy-induced slowdowns. It has become clear to us that in order to remain successful as a component supplier to the automotive OEM’s, the supplier will have to be of substantial size.”
“We do not believe that, in the current or expected capital markets, we will have the opportunity to reach that necessary size within a reasonable time frame,” Berthelot continued. “As a result, we have decided to change our course and concentrate on our aerospace product businesses, where size is not a prerequisite to continuing success.” �FastenerNews.com