Global Fastener News

1998 FIN – Cordant Agrees to Buy Fastener Manufacturer Jacobson

November 10
00:00 2011

 

May 26, 1998 FIN – Cordant Technologies Inc. announced that its Huck International subsidiary has agreed to buy Jacobson Mfg. Co. Inc. for $270 million
Founded in 1950, Jacobson manufactures fasteners, metal parts and precision-engineered plastic products. Jacobson fastening systems are used in automotive, construction, consumer products and heavy equipment applications.

Jacobson revenue for 1998 is projected at $145 million.

Jacobson is 100% owned by founder and chairman Harvey Jacobson.

Cordant – formerly Thiokol – expects the transaction to close by the end of June. The deal is subject to regulatory approvals.

Cordant CEO James Wilson said Jacobson Inc. is “a perfect fit with our Huck operation. Jacobson broadens our offering in the industrial fastener sector and puts us into the rapidly growing market for precision plastic components.”

Cordant has 16,500 employees and annual sales of $2.2 billion. Cordant changed the company’s name from Thiokol Corporation effective May 7.

The Thiokol Propulsion division manufactures rocket propulsion systems. Cordant owns a 62% interest in Howmet International, an aerospace and commercial cast parts manufacturer.

The name change is part of a strategy to broaden the company’s identity. “We recognized that it was difficult to grow a company that was dependent on one basic product line – solid rocket propulsion systems, and one market – the government, even though this business has performed well,” Wilson said. “So, in 1991 we acquired Huck and in 1997 completed the acquisition of additional shares of Howmet to give us majority ownership.”

Cordant reported net income for its third quarter –  which ended March 31 – as $32.8 million, compared with $20.8 million for the same period in 1997. Sales for the past nine months total $1.15 billion.  ©1998/2011 Fastener Industry News.

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