Global Fastener News

2001 FIN – Financial Buyers Show Interest in Fastener Industry

September 26
00:00 2012


April 30, 2001 FIN – The interest of financial buyers in acquiring fastener manufacturers and distributors indicates fastener companies have been undervalued in the marketplace, Richard Hagan summarized a review of the top fastener acquisitions of 2000.
Hagan, president of New York-based Pinnacle Capital Corporation, said financial buyers in the United States and abroad “were very active in the fastener industry during 2000. In fact, private equity firms – also called management buy-out (MBO) or leveraged buy-out (LBO) firms – consummated a majority of the largest fastener company acquisitions of the year.”
The investment banker who specializes in putting together fastener company transactions, issued his fourth annual list of top fastener company transactions.
Hagan cited the following acquisitions as examples of financial buyers’ interest in fastener companies:
• Heartland Industrial Partners L.P., a private equity firm founded by former Reagan administration budget director David Stockman; Tim Leuliette, the former president of Penske Corp.; and Daniel Tredwell, the former managing director of Chase Securities, purchased MascoTech Inc. for $2.04 billion.
• Cinven Ltd., the largest private equity firm in the United Kingdom, purchased McKechnie plc for $934.6 million.
• Citicorp Venture Capital Ltd., via its portfolio company FabriSteel Products Inc., purchased Nelson Stud Welding and Progressive Stamping Company Inc. for an undisclosed amount.
• Glencoe Capital LLC, a Chicago-based private equity firm, purchased a controlling interest in Kar Products Inc. for $66.8 million.
• The private equity unit of The Royal Bank of Scotland, via its portfolio company Wyko Group Limited, purchased Lilleshall plc for $48.2 million.

“We believe that the increased activity of financial buyers in the fastener industry, particularly with respect to the takeovers of three publicly traded companies last year – MascoTech, McKechnie and Lilleshall – is a clear indication that fastener companies are generally being undervalued by the marketplace,” Hagan finds. “That said, the $1 million question is: When will investors again become interested in owning basic, “old-line” manufacturing and distribution companies like those comprising the fastener industry?”©2001 2001/2012 Fastener Industry News
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Gone: MascoTech, Cordant & Maple Leaf Aerospace
April 30, 2001 FIN – The third annual FIN Review of Fastener Stocks finds new corporate names during 2000 and early 2001 and the list missing a few names from the end of 1999.
Gone from the list of publicly held corporations is MascoTech Inc., which was acquired by privately held Heartland Industrial Partners LLP during 2000. MascoTech holdings include Lake Erie Screw Corp., Cuyahoga Bolt & Screw, Eskay Screw, K-Tech and Monogram Aerospace Fasteners.

Cordant Technologies is no longer a corporate name. Aluminum giant Alcoa Inc. acquired Cordant and its fastener manufacturing subsidiaries: Huck International, Jacobson Mfg. Co., and Continental/Midland Group. Remember Maple Leaf Aerospace? It became Dallas-based TriStar Aerospace and was acquired by AlliedSignal Inc. in 1999. AlliedSignal was acquired by Honeywell International in late 1999. And in late 2000 General Electric announced plans to acquire Honeywell. The deal is pending North American and European regulatory reviews. Another fastener name headed for extinction is Industrial Holdings Inc. The company is expected to become T-3 Energy Services Inc. after a merger is complete during 2001. Premier Farnell plc was not well known in North America. With the sale of most of its fastener business here to Lawson Products Inc., Premier Farnell is unlikely to become a household name on this continent. ©2001/2012 Fastener Industry News
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