Global Fastener News

2001 FIN – Industrial Holdings Sells Its Fastener Companies

September 28
00:00 2012

 

February 16, 2001 FIN – Industrial Holdings Inc. is offering its engineered products group for sale. The group manufactures fasteners and specialty metal components for OEMs in home furnishings, automotive and electrical components industries.
IHI of Houston has retained Richard Hagan of New York-based Pinnacle Capital Corporation to review offers.
The subsidiaries for sale are Jackson, MI-based Orbitform, which manufactures orbital and impact fastener setting equipment and automated assembly systems; American Rivet of Chicago, which manufactures cold headed fasteners; Ideal Products of Beacon Falls, CT, which manufactures cold headed pin and wire products; and Landreth Products of Houston, which designs and produces rivets and other fasteners.
CEO Robert Cone told Fastener Industry News that IHI would “presumably retain an equity positions” in a divestiture and the remaining business would “be an energy services company. “We now manufacture and refurbish valves and control systems for major drilling contractors and supply pumping and rotating equipment and services in the oil and gas markets,” Cone noted. “Our involvement in both the upstream and downstream energy markets should increase substantially.” ©2001/2012 Fastener Industry News
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April 19, 2001 FIN – Industrial Holdings Inc. announced plans to merge with T-3 Energy Services Inc. The merger includes an equity infusion by a private equity fund managed by First Reserve Corporation.
IHI fastener companies include American Rivet, Ideal, Landreth, and Orbitform from the engineered products group and Ameritech, Lonestar Screw, Walker Bolt and A&B Bolt.
Houston-based IHI earlier put the engineered products group up for sale in order to focus on its energy industry market.
Current shareholders of the privately held T-3 will acquire control of IHI. T-3’s largest shareholder,
First Reserve Fund VIII L.P., will invest an estimated $24.6 million and will work with IHI to refinance the combined company’s debt into a long-term credit facility.
The merger is subject to customary regulatory approvals and is scheduled to close in the third quarter.
IHI CEO Robert Cone told Fastener Industry News the merger “will allow IHI to continue its growth strategy with an improved balance sheet and a strong, recognizable energy management team.” The combined company “will serve the Gulf of Mexico market providing oilfield manufacturing and aftermarket repair services to a diverse customer base.” ©2001/2012 Fastener Industry News
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December 6, 2001 FIN – Industrial Holdings Inc. announced the sale of three of four subsidiaries that comprise its Engineered Products Group. American Rivet Company was sold to Jebco Screw & Rivet Mfg. Company, and Ideal Products and Orbitform were sold to a management investor group operating as Orbitform LLC.
Robert Cone, CEO of IHI, said the net cash proceeds will be used to “further de-leverage our balance sheet,” in anticipation of the IHI merger with T-3 Energy Services before the end of 2001.
Cone said he is “very optimistic about our prospects as a properly capitalized oil and gas services company, which is what we believe the merged IHI and T-3 will represent.”
• Franklin Park, IL-based American Rivet manufactures solid, semi-tubular and tubular rivets, externally-threaded fasteners and other cold-headed special parts.
• Chicago-based Jebco is a privately held manufacturer of cold-headed specialty fasteners.
• Orbitform LLC completed the purchase of assets of Acquisition LP (dba Orbitform) and Ideal Products Inc. Ideal and Orbitform were wholly-owned subsidiaries of the Engineered Products Group of Industrial Holdings Inc. Orbitform LLC is the newly-formed Jackson, MI-based Orbitform manufactures rivet-setting machinery and automated assembly systems for the automotive and industrial markets.
• Beacon Falls, CT-based Ideal manufactures fabricated metal components for the electrical, automotive, drapery hardware and other industries.
The fourth sale, Landreth, is expected to close by the end of 2001.
Richard Hagan, president of New York-based Pinnacle Capital Corporation, managed the sale for Industrial Holdings. . ©2001/2012 Fastener Industry News
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December 21, 2001 FIN – Landreth Fastener Corporation completed the purchase of the assets of Landreth Metal Forming Inc. from Industrial Holdings Inc.
The Landreth sale is the fourth and final portion of the divestitures planned by Industrial Holdings prior to its merger with T-3 Energy Services Inc.
T-3 now trades on the Nasdaq as TTES.
Michael Stansberry has been named president and CEO and Michael Mino CFO.
Houston-based Landreth manufactures solid, semi-tubular & shoulder rivets, externally-threaded fasteners and other cold-headed special parts.
LFC is a newly formed corporation owned by Thomas Landreth, the founder and president of Landreth. He sold the original company to IHI. “By combining the two companies, we have created a diversified manufacturing and service business focused primarily on the Gulf Coast energy markets,” Stansberry said of the IHI and T-3 merger. “We believe our core group of operations will serve as a solid base upon which we plan to grow through acquisition and product line extensions.”
Mino said the merger and $72.1 million equity infusion by T-3’s largest shareholder, First Reserve Fund VIII L.P., make the company “adequately capitalized. Total debt balances on the company’s opening balance sheet will be less than $40.0 million. Our conservative capitalization should prove invaluable in today’s uncertain energy markets.”
T-3 now provides products and services for Gulf of Mexico and onshore oil and gas companies, refinery plants, shipyards and offshore fabrication companies. Industrial Holdings earlier sold three parts of its Engineered Products Group: American Rivet Company was sold to Jebco Screw & Rivet Mfg. Company, and Ideal Products and Orbitform were sold to an investor group operating as Orbitform LLC.
Industrial Holdings also sold its Beaird segment and its subsidiary, GHX Incorporated.
For the nine months ended September 30, 2001, T-3 Energy Services’ net income was $2.2 million on $62.1 million in revenue. Richard Hagan of New York-based Pinnacle Capital Corporation served as financial advisor to IHI in the transactions.  ©2001/2012 Fastener Industry News
For information on permission to reuse or reprint this article please e-mail: FIN@GlobalFastenerNews.com

See Also:  2000 FIN – Industrial Holdings Counting on Oil Industry Rebound in the Fastener History section of GlobalFastenerNews.com

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