2005 FIN – Private Equity Firm to Acquire PennEngineering
FASTENER HISTORY
2005 FIN – Private Equity Firm to Acquire PennEngineering
January 25, 2005 FIN – PennEngineering & Manufacturing Corp. signed an agreement to be purchased for about $330 million in cash by PEM Holding Co., an affiliate of Tinicum Capital Partners II.
Under the arrangement, stockholders will receive $18.25 per share for the Danboro, PA-based fastener manufacturer. The transaction is expected to close in the first half of 2005.
CEO Kenneth Swanstrom could see a windfall from the sale. According to the Securities & Exchange Commission filings, Swanstrom owns 24% of the company’s outstanding class A common stock. Based on the current agreement. Swanstrom could make as much as $87 million from the deal.
The boards of directors for PennEngineering and PEM Holding Co. have unanimously approved the transaction.
Tinicum Capital Partners II, L.P. is a New York-based private investment partnership with over $600 million in committed equity capital.
The announcement follows months of industry speculation that PennEngineering would be sold. After disappointing sales in 2002, PennEngineering bounced back in 2003 with 26.5% improvement to $190.7 million in revenues. During the first quarter of 2004, the company reported a 986% jump in overall profit to $5.87 million.
PennEngineering has found production success in its fastener division by converting operations to an innovative mini-factory approach that promotes teamwork among employees and rewards collective initiative.
Founded in 1942, PennEngineering produces self-clinching fasteners, installation equipment, miniature electric motors and other metal products. The company operates facilities in North Carolina, Ohio and Pennsylvania, as well as Europe and Asia. Web: penn-eng.com ©2005/2012 Fastener Industry News
For information on permission to reuse or reprint this article please e-mail: FIN@GlobalFastenerNews.com
2005 FIN � PennEngineering Sales Up
May 12, 2005 FIN – PennEngineering & Manufacturing Co. reported sales for the first quarter of 2005 rose $500,000 to $63.8 million, while net income slipped 15% to $4.8 million.
PennEngineering said income was hurt by a $975,000 merger transaction charge. The company has signed an agreement to be purchased for about $330 million in cash by PEM Holding Co., an affiliate of private equity firm Tinicum Capital Partners II. The deal is expected to close in the first half of 2005. Web: penn-eng.com ©2005/2012 Fastener Industry News
For information on permission to reuse or reprint this article please e-mail: FIN@GlobalFastenerNews.com
Related Links:
There are no comments at the moment, do you want to add one?
Write a comment