Global Fastener News

1999 FIN  Fairchild Acquires Kaynar

August 23, 1996 – Kaynar Technologies, Inc., acquired Recoil Pty. Ltd., from Advent Ltd. an Australian-based venture capital group, for an undisclosed sum, Kaynar president Jordan Law announced.

Recoil manufactures and distributes wire thread insert systems. Manufacturing is based in Melbourne, Australia. There are sales and distribution offices in the U.S. U.K. and Belgium.
Recoil’s 1996 sales are projected to be US $10 million.
Recoil, formerly Brimech Industries Pty. Ltd., was founded in 1980 to supply the automotive industrial and aerospace markets, along with the associated after markets. Recoil produces helically would wire thread inserts to numerous industry standards and specifications.
Recoil received ISO 9002 certification in 1992 and ISO 9001 earlier this year.

Bob Beers, vice president of sales and marketing for KTI, said 45% of Recoil’s business is in the U.S., but there are no plans to move manufacturing from Australia.
“This is not a company that needs fixing,” Beers said of Recoil.

Law said Ken Jones will remain group CEO and the current distribution and sales organization will continue under current management and staff.

KTI supplies high technology fasteners, fastening systems and components to aerospace and other markets worldwide. Products are marketed under the Kaynar, Microdot and K-Fast brand names.
KTI has two California plants located in Fullerton and Placentia.
Sales exceeded $100 million before the acquisition.
Kaynar was owned by Microdot until about three years ago when it was bought by management with GE Capital. Kaynar is known for female nuts for aerospace.

Richard Hagen, president of Pinnacle Capital Corporation, told FIN this is the first industrial acquisition for Kaynar.
Pinnacle initiated and assisted in negotiations for Recoil.
Kaynar was already producing solid and wire inserts through Microdot, and Recoil manufactures wire thread inserts.
“They’ve been looking to get to a certain size and then go public,” Hagen said of the Kaynar deal.

Law said Recoil has “excellent cost-comparative manufacturing, a great distribution network and a proven formula for entering new markets.”
The acquisition “offers diversification to our core aerospace focus by expanding into the industrial and automotive markets,” Law said.
“It also makes KTI a truly international manufacturing company.”

Recoil was 70% owned by Advent Limited, a venture capital firm listed on the Australian stock exchange. Thirty percent was owned by B. Price Holdings Pty. Ltd.

Bruce Price founded Recoil in his Melbourne garage.

Advent, a venture capital firm which usually holds acquisitions for five to seven years, owned Recoil for eight years.

Beers said Fullerton-based Kaynar is “continually looking to grow through market share and acquisition. We have had several false starts in the last couple years, but this looked to be good from the start.” ©1996/2010 Fastener Industry News