In the past few years, major producers of industrial fasteners have completed a number of acquisitions and divestitures that reflect the size and competitive environment of the global industrial fastener market. According to Elliot Woo, analyst with The Freedonia Group, this trend is expected to continue, with the industry anticipated to become more concentrated as manufacturing, product development, marketing, and distribution costs continue to climb.
Diversification & Expansion of Fastners Offerings Via Acquisitions
Leading industrial fastener suppliers have used acquisitions to broaden their product portfolios to include new products and strengthen their position in specific market categories. For example, the largest recent acquisition in the fastener industry was Berkshire Hathaway’s $37.2 billion purchase of Precision Castparts Corporation (PPC) in January 2016. PPC, a worldwide diversified manufacturer of complex metal products, was the world’s second-largest fastener supplier behind Illinois Tool Works. One of the primary reasons for the takeover was PPC’s position as a leading American exporter of fasteners for the global aerospace market. Combined with revenues generated by its Marmon Holdings subsidiary, Berkshire Hathaway is now the world’s largest supplier of fasteners.
In September 2016, Italy-based Agrati acquired ContMid Holdings (CMG), a U.S.-based manufacturer of metal fasteners for automotive applications, from Monomoy Capital Partners. Agrati already had strength in the automotive sector and purchased CMG specifically to create one of the world’s leading suppliers of automotive fasteners.
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