LINK Magazine 2017

 

Fastener Company Acquisitions Completed During the Second Half of 2016In this issue of Link Magazine, we will briefly review the fastener company acquisitions completed during the second half of the 2016 calendar year (see Link Fall 2016 Issue, page 36 for the acquisitions completed in the first half of 2016). It is impossible to track every single fastener company transaction because many deals involving private companies are not publicly disclosed. That said, we believe the following list is the most comprehensive and detailed you will find.

With forty-nine deals being consummated last year, Fastener industry deal-making remained strong last year and 2016 witnessed the most deals completed over the past nine years – the time period Pinnacle has been assiduous in compiling this comprehensive deal list.

 

 

Colony Hardware Corporation purchased Fasteners Inc. On June 17, 2016, Colony Hardware Corporation purchased Fasteners Inc.  Founded in 1946 and headquartered in Grand Rapids, Michigan, Fasteners Inc. is a regional distributor of fasteners, power & hand tools, safety products and consumable supplies for the construction and general industrial markets.  The company’s main distribution center is in Grand Rapids and there are nine branch stores / warehouses in Michigan (7) and Illinois (2).  Fasteners Inc. also provides power tool repair and rental services across its network of branches.  Founded in 1988 and headquartered in Orange, Connecticut, Colony Hardware is a regional distributor of power tools, safety equipment and consumable jobsite supplies for the commercial construction market.  The company provides extensive jobsite delivery services, along with equipment and power tool rental and repair services.  Colony Hardware operates eleven branch stores / warehouses in New York (3), Connecticut, Massachusetts, Rhode Island, New Jersey, Pennsylvania, Maryland and Ohio (2).  Colony Hardware is a portfolio company of Tailwind Capital Group LLC (“Tailwind”), a New York City-based private equity firm with more than $1 billion of committed capital.  Tailwind purchased the company in October 2015 from another private equity firm. 
Purchase price: not available

 

Raimund Beck GmbH & Co. (“Beck Group”) purchased ET&F Fastening Systems Inc. On June 22, 2016, Raimund Beck GmbH & Co. (“Beck Group”) purchased ET&F Fastening Systems Inc. (“ET&F”).  Founded in 1982 and located in Solon, Ohio (a Cleveland suburb), ET&F is a designer, manufacturer and distributor of pneumatic fastening systems for steel and concrete construction.  The company’s proprietary product range includes application-specific pneumatic power tools and collated ballistic-point steel pins used for attaching interior and exterior building materials (such as wood or gypsum-based panels or sheathing) to steel beams / studs or concrete substrates.  Founded in 1904 and headquartered in Mauerkirchen, Austria, Beck Group is a designer, manufacturer and distributor of a proprietary range of collated fasteners (staples, nails, pins and screws) and auto-feed, pneumatic power tools (staplers, nailers and screw drivers).  The company’s products are used by the construction industry, along with a diverse range of non-construction production / assembly applications (automotive, furniture & bedding, millwork, pallets & crates. etc.).  Beck Group maintains four branch offices / warehouses in Germany, Italy, China and the United States.  FASCO America, a wholly-owned subsidiary located in Muscle Shoals, Alabama, serves as the master distributor for Beck Group products in North America.  
Purchase price: not available.

 

ZF TRW Automotive Holdings Corp.On July 1, 2016, Illinois Tool Works Inc. (“ITW”) purchased the Engineered Fasteners & Components (“EF&C”) business unit of ZF TRW Automotive Holdings Corp. (“ZF TRW”).  Headquartered in Enkenberg, Germany, EF&C is a global manufacturer of engineered fasteners and components sold primarily to automotive OEMs and their tier suppliers.  The company’s extensive product range includes trim fasteners, wire harness fasteners, pipe fasteners, hole plugs, pressure release valves and many others.  EF&C operates from 15 facilities in Germany (3), France, Italy, the Czech Republic, Slovakia, China (3), Korea (2) Japan, the United States and Mexico.  EF&C employs around 3,500 people and generated net sales of approximately $470 million in calendar 2015.  Founded in 1912 and headquartered in Glenview, Illinois, ITW (NYSE: ITW) is a global manufacturer of a diverse range of industrial products.  The company’s operations are divided into seven business segments:  Automotive OEMs; Food Equipment; Test, Measurement & Electronics; Polymers & Fluids; Welding; Construction Products; and Specialty Products.  ITW employs more than 48,000 people worldwide and generated net sales of $13.4 billion in calendar 2015. 
Purchase price: $450 million

 

Expander System Sweden AB On July 5, 2016, Nord-Lock International AB (“Nord-Lock”) purchased Expander System Sweden AB (“Expander”).  Founded in 1986 and headquartered in Atvidaberg, Sweden, Expander is a designer, developer and manufacturer of proprietary expandable pivot pin systems for heavy machinery and equipment.  The company’s pivot pin products are used in thousands of models of heavy equipment used by the mining, forestry, construction, oil & gas, marine and general industrial markets.  Expander has manufacturing plants in Atvidaberg and DeWitt, Iowa, along with a global sales and engineering support network.  The company employs 45 people and generated net sales of SEK72 million (US$8.5 million) in 2015.  Founded in 1983 and headquartered in Malmö, Sweden, Nord-Lock is a designer and manufacturer of proprietary bolt securing and bolt tensioning systems.  The company’s products are primarily used in safety-critical applications, typically involving high-pressure and/or high-vibration environments.  Nord-Lock has sales and manufacturing subsidiaries in more than 20 countries and generated net sales of SEK797 million (US$94.3 million) in 2015.  The company is a wholly-owned subsidiary of Investment AB Latour (Stockholm Stock Exchange: LATO), a Göteborg, Sweden-based investment company. 
Purchase price: not available

 

Kelso & Company purchased Fastener Holdings Inc., doing business as SouthernCarlson, from Tenex Capital Management L.P.On July 26, 2016, Kelso & Company purchased Fastener Holdings Inc., doing business as SouthernCarlson, from Tenex Capital Management L.P.  Formed in November 2014 with the merger of Carlson Systems Holdings Inc. and Southern Fastening Systems Inc., SouthernCarlson is a super-regional distributor of power-driven fasteners, packaging supplies and specialty tools for the residential construction and general industrial markets.  In addition to selling supplies and equipment, the company provides value-added services including equipment repair & maintenance and vendor managed inventory.  SouthernCarlson has corporate offices in Omaha, Nebraska and Muscle Shoals, Alabama and employs approximately 850 people.  The company operates more than 150 retail & service centers and 15 distribution centers spread across 34 states and Mexico.  Kelso & Company is a New York City-based private equity firm and the company’s latest fund, Kelso Investment Associates IX, closed in May 2016 with $2.56 billion of committed capital. 
Purchase price: not available

 

AF Fasteners Limited purchased UFC Aerospace Europe Limited (“UFC Aerospace”) from KLX Inc.On July 28, 2016, AF Fasteners Limited purchased UFC Aerospace Europe Limited (“UFC Aerospace”) from KLX Inc. (Nasdaq: KLXI).  Located in Southend, England, UFC Aerospace is a niche manufacturer of fasteners and machined components for the European aerospace market.  The company produces cold headed, externally-threaded fasteners and made-to-print specials, along with non-metallic components machined from polytetraflouroethylene (PTFE) and Nylon-66.  UFC Aerospace is an approved supplier to Airbus, Rolls Royce, Honeywell, GKN Aerospace, BAE Systems and many more commercial aircraft manufacturers.  Founded in 1972 and located in Glossup, England, AF Fasteners manufactures externally-threaded fasteners for the European aerospace market.  The company is an approved supplier to Airbus, Hawker Beechcraft, Agusta Westland, Saab Aerospace, Messier Dowty and many more commercial aircraft manufacturers.  A privately-owned company, AF Fasteners employs a total of 30 people.  KLX is the world’s largest distributor and supply chain management service provider of aerospace fasteners and consumable hardware with aerospace segment net sales of $1.3 billion in fiscal 2015.  KLX Aerospace occupies more than 1.4 million square feet of floor space in 17 principal operating facilities and employs approximately 1,900 people worldwide.  
Purchase price: not available

 

Nelson Fastener Systems (“Nelson”) purchased TOG Manufacturing Company Inc. (“TOG”) from Global Power Equipment Group Inc. On July 29, 2016, Nelson Fastener Systems (“Nelson”) purchased TOG Manufacturing Company Inc. (“TOG”) from Global Power Equipment Group Inc. (OTC: GLPW).  Founded in 1982 and located in North Adams, Massachusetts, TOG is a niche manufacturer of precision machined components for steam & natural gas turbine, shipbuilding, off-shore drilling and mission-critical general industrial applications.  The company’s product range includes specialty fasteners, rotor studs, custom bushings, valve components and other precision nitride parts.  TOG employs a total of 36 people.  Nelson is a business unit of Doncasters Group Limited (“Doncasters”).  Founded in 1778 and headquartered in Burton-upon-Trent, England, Doncasters is an international engineering group that manufactures precision components and assemblies for aerospace, industrial gas turbine, automotive turbocharger and high-end industrial applications.  The Nelson business unit is comprised of Nelson Stud Welding Inc., The Ferry Cap & Set Screw Company, Specialty Bar Products Company, Automatic Screw Machine Products Co. Inc., Erie Bolt Corporation and Bulldog Barrels LLC.  Following the transaction closing, TOG’s trading name, location and staff will remain the same.  
Purchase price: $6 million

 

Vulcan Threaded Products Inc. On August 1, 2016, Steel Dynamics Inc. (Nasdaq: STLD) purchased Vulcan Threaded Products Inc. (“Vulcan”).  Founded in 1978 and located in Pelham, Alabama (near Birmingham), Vulcan is the nation’s largest manufacturer and distributor of threaded rod products.  Vulcan’s product range includes threaded steel rod, cold finished bar and heat treated bar.  The company shipped 89,000 tons of these products in the 12 months ended March 31, 2016.  A privately-owned company, Vulcan operates from more than 400,000 square feet of manufacturing and warehouse space and employs 225 people.  Founded in 1993 and headquartered in Fort Wayne, Indiana, Steel Dynamics produces a diverse range of steel products including hot roll steel coils, structural & rail steel, engineered bar products and specialty shapes.  The company is also one of the largest metal recyclers in the United States with approximately 75 recycling locations.  Steel Dynamics generated net sales of $7.6 billion in calendar 2015 and employs around 7,500 people.  The purchase price paid for Vulcan was approximately 5.0 times trailing 12 months EBITDA (earnings before taxes, depreciation & amortization). 
Purchase price: $114 million

 

Great Lakes Fasteners CorporationOn August 2, 2016, All Integrated Solutions (“AIS”) purchased Great Lakes Fasteners Corporation (“GL Fasteners”).  Founded in 1937 and headquartered in Grand Rapids, Michigan, GL Fasteners is a distributor of fasteners and Class C components, specializing in providing customers with advanced supply chain management services.  The company’s largely OEM customer base is concentrated in Michigan and the surrounding states.  The industries served by GL Fasteners include automotive, furniture, process equipment, sheet metal fabrication, material handling and marine.  The company has a branch warehouse in Traverse City, Michigan.  Founded in 1962 and headquartered in Franksville, Wisconsin, AIS is a distributor of fasteners, Class C components and general industrial supplies.  The company specializes in providing customers with advanced supply chain management solutions.  AIS supplies a diverse range of OEM and MRO customers and maintains four branch warehouses in:  Minneapolis, Minnesota; Oshkosh, Wisconsin; Cedar Rapids, Iowa; and Fargo, North Dakota.  AIS is a portfolio company of High Road Capital Partners LLC, a New York City-based private equity firm with more than $470 million of committed capital under management. 
Purchase price: not available

 

LoneStar Group purchased AmeriBolt Inc.On August 5, 2016, LoneStar Group purchased AmeriBolt Inc.  Founded in 2005 and headquartered in Sycamore, Alabama, AmeriBolt is a manufacturer and importer of all-thread studs, heavy hex bolts, cap screws, heavy hex nuts, flat washers and lock washers.  The majority of AmeriBolt’s sales are of alloy or stainless steel product for high-end applications including heavy construction, petrochemical, transportation, water works and general industrial.  AmeriBolt maintains two distribution branches in Houston, Texas and Moss Point, Mississippi and employs a total of 160 people.  Formed in 2001 and headquartered in Wolverhampton, England, LoneStar Group is a global manufacturer and distributor of fasteners, gaskets and made-to-print specialty components.   The company supplies a diverse range of critical-application components to the oil & gas, petrochemical, power generation, heavy construction and general industrial markets.  LoneStar Group is comprised of 13 business units operating across North America, Europe, the Middle East and Asia and employs more than 1,000 people worldwide.  The company is a portfolio company of AEA Investors LP, a New York City-based private equity firm.  
Purchase price:  not available

 

A. Agrati SpA (“Agrati Group”) purchased ContMid Holdings Inc. (“Continental / Midland”)On September 2, 2016, A. Agrati SpA (“Agrati Group”) purchased ContMid Holdings Inc. (“Continental / Midland”).  Formed in 1986 and headquartered in Park Forest, Illinois, Continental / Midland manufactures a broad range of cold formed, externally-threaded fasteners and made-to-print specialty parts.  The company’s core customers are automotive OEMs and their tier suppliers.  Continental / Midland operates four manufacturing plants in:  Park Forest, Illinois; Valparaiso, Indiana; Medina, Ohio; and Tiffin, Ohio, along with a distribution center in Millersport, Ohio.  The company generates annual net sales of approximately $240 million and employs 485 people.  Founded in 1939 and headquartered in Veduggio con Colzano, Italy, Agrati Group is a global manufacturer of fasteners and assembly components for the automotive, transportation and general industrial markets.  Following the Continental / Midland acquisition, Agrati Group operates 12 manufacturing plants and 5 distribution centers located across Europe, North America and China.  The company employs more than 2,500 people worldwide and generates annual net sales of more than US$700 million.  The seller of Continental / Midland was Monomoy Capital Partners, a New York City-based private equity firm with $1.5 billion of committed capital under management.  
Purchase price: $200 million (approximately)

 

AFC Holdings Inc. purchased Eckart & Finard Inc.On September 23, 2016, AFC Holdings Inc. purchased Eckart & Finard Inc. Founded in 1960 and located in Hartford, Connecticut, Eckart & Finard is a full-service distributor of fasteners, Class C parts and custom engineered components.  The company specializes in providing advanced supply chain management services to high-technology, medical equipment and general industrial manufacturers (OEMs).  The majority of Eckart & Finard’s core customers receive some level of “value-added services” including just-in-time delivery, remote bar-scan ordering and bin-stocking.  Founded in 1967 and headquartered in Bridgeville, Pennsylvania, AFC Holdings is a distributor of fasteners and Class C parts which specializes in providing customers with advanced supply chain management solutions.  The company operates five branches in:  Fairfield, Ohio; Groveport, Ohio; Temecula, California; Marietta, Georgia; and Export, Pennsylvania.  Prior to the purchase of Eckart & Finard, AFC Holdings generated annual net sales of approximately $50 million and employed a total of 55 people.  AFC Holdings is a portfolio company of Incline Equity Partners (“Incline Equity”), a Pittsburgh-based private equity firm with $300 million of committed capital under management.  Incline Equity purchased the company in March 2015 from another private equity firm. 
Purchase price: not available

 

Haggard & Stocking Associates Inc. (“Haggard & Stocking”) purchased Imperial Fastener & Industrial Supply Co. LLC (“Imperial Fastener”)On September 30, 2016, Haggard & Stocking Associates Inc. (“Haggard & Stocking”) purchased Imperial Fastener & Industrial Supply Co. LLC (“Imperial Fastener”).  Founded in 1963 and located in Evansville, Indiana, Imperial Fastener is a full-line distributor of fasteners and general industrial supplies.  The company operates from a 25,000 square foot facility and supplies a diverse OEM, MRO and construction / contractor customer base.  Founded in 1972 and headquartered in Indianapolis, Indiana, Haggard & Stocking is a value-added distributor of production tooling & abrasives, fasteners, material handling products, safety products and general shop supplies.  The company focuses on the MRO requirements of a diverse customer base including automotive, transportation, aerospace / airline, metal fabrication and general industrial customers.  Haggard & Stocking maintains branch warehouses in:  Fort Wayne, Indiana; Waco, Texas; and Greensboro, North Carolina, along with numerous in-plant stocking locations across the mid-west and southeastern United States.  Following the transaction closing, Imperial Fastener will operate as a division of Haggard & Stocking from its existing facility.
Purchase price: not available

 

Penn Engineering & Manufacturing Corp. (“PennEngineering”) purchased Heyco Products Inc. (“Heyco”)On October 3, 2016, Houston Wire & Cable Company (“Houston Wire”) purchased Vertex Corporate Holdings Inc., doing business as Vertex Distribution, from DXP Enterprises Inc. (Nasdaq: DXPE).  Headquartered in Attleboro, Massachusetts (outside Boston), Vertex Distribution is an importer and stocking master distributor of stainless steel and specialty alloy fasteners.  The company’s products are used in a broad range of end markets including water & waste water, power generation, oil & gas, marine and general industrial manufacturing.  Vertex Distribution operates 8 warehouses in Boston, Chicago, Cleveland, Charlotte, Atlanta, Tampa, Houston and Los Angeles.  The company generates annual net sales of around $30 million and employs a total of around 80 people.  Founded in 1975 and headquartered in Houston, Houston Wire (Nasdaq: HWCC) is one of the largest distributors of electrical and mechanical wire & cable in the United States.  The company operates 10 distribution centers strategically located across the US and employs more than 350 people, including 40 full-time field sales personnel.  In calendar 2015, Houston Wire generated net sales of $308 million. 
Purchase price: $32.3 million

 


Penn Engineering & Manufacturing Corp. (“PennEngineering”) purchased Heyco Products Inc. (“Heyco”)On October 3, 2016, Penn Engineering & Manufacturing Corp. (“PennEngineering”) purchased Heyco Products Inc. (“Heyco”).  Founded in 1926 and located in Toms River, New Jersey, Heyco designs and manufactures:  i) plastic fasteners (plugs, bushings, grommets, locknuts, snap rivets, etc.);  ii) molded plastic components (conduit, tubing, fittings, cordgrips, cable clamps, circuit board clips, etc.); and  iii) stamped electrical components (terminal blocks, wire connectors, cordset contacts, ground pins, grounding clamps, etc.).  Heyco’s branded and proprietary products are used by a broad range of end-user industries including appliance, medical, lighting, solar power, transportation and general industrial.  Heyco generates annual net sales of approximately $40 million.  Founded in 1942 and headquartered in Danboro, Pennsylvania, PennEngineering is a developer and manufacturer of a diverse range of self-clinching fasteners used primarily in sheet metal fabrication.  The company’s branded and proprietary products include nuts, threaded inserts, screws, pins, studs and standoffs, along with installation tools and equipment.  Prior to the Heyco acquisition, PennEngineering’s net sales were approximately $440 million.  The company is owned by Tinicum Inc., a New York City-based private equity firm with $1.6 billion of committed capital. 
Purchase price: $130 million

 

PrimeSource Building Products Inc. (“PrimeSource”) purchased Northeast Wholesale Nail & Fastener Co. Inc. (“Northeast Wholesale”)On November 3, 2016, PrimeSource Building Products Inc. (“PrimeSource”) purchased Northeast Wholesale Nail & Fastener Co. Inc. (“Northeast Wholesale”).  Founded in 1990 and headquartered in Canton, Massachusetts, Northeast Wholesale is a distributor of pneumatic fasteners, pneumatic tools and other building materials.  The company focuses on supplying independent lumber yards and STAFDA tool suppliers with both brand name and private label products.  Northeast Wholesale supplies approximately 300 customers in the New England and Mid-Atlantic US and operates a branch warehouse in Kenduskeag, Maine.  Founded in 1990 and headquartered in Irving, Texas, PrimeSource is the largest distributor of construction fasteners and one of the largest distributors of non-lumber building products in North America.  The company’s fastener product range includes nails, screws, anchor bolts, staples and pneumatic installation tools which are marketed under the Grip-Rite®, FastenMaster® and Pro-Twist® brand names.  The company operates 33 distribution centers and employs 1,200 people across North America.  Since 2015, PrimeSource has been a portfolio company of Platinum Equity LLC, a Los Angeles-based private equity firm with $6.5 billion of committed capital.
Purchase price: not available

 

 Lawson Products Inc. (Nasdaq: LAWS) purchased Mattic Industries Inc.On November 15, 2016, Lawson Products Inc. (Nasdaq: LAWS) purchased Mattic Industries Inc.  Founded in 1982, Mattic Industries is a value-added distributor of fasteners and general industrial supplies which focuses on supplying general industrial, oil & gas and automotive MRO customers in British Columbia and Alberta, Canada.  The company operates two warehouses in Surrey, BC (outside Vancouver) and Calgary, Alberta.  Mattic Industries employs a total of 18 people, including 10 full-time sales representatives.  Founded in 1952 and headquartered in Chicago, Illinois, Lawson Products is a national distributor of fasteners, fittings, cutting tools, hand tools and general industrial supplies.  The company carries a comprehensive range of products and provides inventory management services to MRO customers throughout the United States, Canada, Mexico and the Caribbean.  On December 31, 2016, Lawson Products employed 1,590 people, including 1,130 sales and marketing representatives.  In calendar 2016, the company generated net sales of $276.6 million.
Purchase price: $3.8 million

 

Atlas Copco AB purchased Phillip-Tech (Beijing) Co. Ltd.On November 24, 2016, Atlas Copco AB purchased Phillip-Tech (Beijing) Co. Ltd.  Headquartered in Beijing and with a sales and engineering center in Shanghai, Phillip-Tech is the exclusive sales and marketing representative in China for Henrob Limited.  Phillip-Tech employs a total of 45 people.  Founded in 1985 and headquartered in Flintshire, Wales, Henrob is a developer and manufacturer of self-piercing rivets and automated rivet installation systems.  Henrob’s proprietary rivets and riveting process are utilized in a diverse range of applications including automotive, heavy trucks & trailers, recreational vehicles, appliances and electronics.  Henrob was acquired by Atlas Copco in September 2014.  Headquartered in Stockholm, Sweden, Atlas Copco (Nasdaq OMX Stockholm: ATCO) designs and manufactures machinery and equipment for a diverse range of industries and applications.  The company operates manufacturing facilities in more than 20 countries and employs more than 43,000 people worldwide.  In calendar 2016, Atlas Copco generated net sales of SEK101.4 billion (US$11.3 billion).  
Purchase price: not available

 

SFS Group AG purchased Tegra Medical LLC.On November 30, 2016, SFS Group AG purchased Tegra Medical LLC.  Founded in 2007 and headquartered in Franklin, Massachusetts, Tegra Medical is a developer and manufacturer of medical devices produced from metal and plastic.  The company’s products are primarily disposal and are used in a broad range of applications including orthopaedics, minimally-invasive surgery and interventional therapies.  Tegra Medical operates four factories in the United States (3) and Costa Rica with more than 200,000 square feet of manufacturing space.  The company employs around 740 people and generates annual net sales of approximately $80 million.  Founded in 1960 and headquartered in Heerbrugg, Switzerland, SFS Group (Swiss Stock Exchange: SFSN) is a global manufacturer of precision engineered components and mechanical fastening systems.  The company’s principal operating units include SFS intec, SFS unimarket, Unisteel Technology and GESIPA Fasteners.  The company operates from more than 70 locations in 25 countries and employs approximately 9,000 people worldwide.  In calendar 2016, SFS Group generated net sales of CHF1.44 billion (US$1.43 billion). 
Purchase price: not available

 

NORMA Group SE purchased the Parker Autoline business unit of Parker Hannifin CorporationOn December 1, 2016, NORMA Group SE purchased the Parker Autoline business unit of Parker Hannifin Corporation (NYSE: PH).  Parker Autoline is headquartered in Guichen, France and operates three production facilities in France, China and Mexico.  The company develops and manufactures plastic push-to-connect connectors and related components for the global automotive and transportation markets.  Parker Autoline products are used for fluid handling applications including fuel lines, coolant lines and brake lines.  The company employs more than 200 people and generated net sales of approximately €40 million (US$42.6 million) in the 12 months ended June 30, 2016.  Headquartered near Frankfort, Germany, NORMA Group (Frankfort Stock Exchange: NOEJ) develops and manufactures a broad range of clamps, connectors, fittings and joining products for companies and applications around the globe.  NORMA Group operates 26 production facilities across Europe, Asia and the Americas and employs around 6,700 people worldwide.  In calendar 2016, NORMA Group generated net sales of €895 million (US$952 million).  
Purchase price: not available

 

Hilti AG (“Hilti Group”) purchased PEC Vertriebs GmbH (“PEC Group”)On December 1, 2016, Hilti AG (“Hilti Group”) purchased PEC Vertriebs GmbH (“PEC Group”).  Founded in 1988 and headquartered in Duisberg, Germany, PEC Group develops and manufactures specialty anchoring products and systems for commercial construction applications.  The company’s product range includes anchors, framing channels & T-bolts, curtain wall brackets, cable holders and support brackets used for concrete and brick facade construction applications.  In addition to its head office, PEC Group operates a single factory in Suzhou, China and two sales offices in Pune, India and Dubai, UAE.  PEC Group employs approximately 100 people worldwide.  Founded in 1941 and headquartered in Schaan, Liechtenstein, Hilti Group is a developer and manufacturer of power tools and associated consumables for the global construction industry.  The company has sales and support locations in more than 120 countries and employs more than 24,000 people worldwide.  A family-owned company, Hilti Group generated net sales of CHF4.6 billion (US$4.55 billion) in calendar 2016.  
Purchase price: not available

 

Bufab AB (“Bufab Group”) purchased Montrose Holdings Limited (“Montrose”).On December 5, 2016, Bufab AB (“Bufab Group”) purchased Montrose Holdings Limited (“Montrose”).  Founded in 1991 and headquartered in High Wycombe, England, Montrose is a full-service distributor of fasteners and Class C parts.  The company specializes in providing customers with advanced supply chain management services including vendor managed inventory, just-in-time delivery, remote bar-scan ordering and bin-stocking.  The company’s customer base includes a broad range of general industrial manufacturers, predominantly located in the UK.  Montrose operates a branch warehouse in Kempston, England and employs a total of 45 people.  The company generated net sales of approximately £6.4 million (US$7.8 million) in the fiscal year ended August 31, 2016.  Founded in 1977 and headquartered in Värnamo, Sweden, Bufab Group (Nasdaq OMX Stockholm: BUFAB) is a full-service distributor of fasteners and Class C parts which specializes in providing advanced supply chain management services.  The company operates 33 wholly-owned subsidiaries in 24 countries and employs around 1,000 people worldwide.  In calendar 2016, Bufab Group generated net sales of SEK2.85 billion (US$318 million).  
 Purchase price: SEK 89 million (US$10.0 million)

 

AFC Industries Inc. purchased R&E Fasteners Inc.On December 9, 2016, AFC Industries Inc. purchased R&E Fasteners Inc.  Founded in 1979 and headquartered in Reno, Nevada, R&E Fasteners is a full-service distributor of fasteners, electronic components and general industrial supplies.  The company supplies industrial manufacturers (OEMs), mining, commercial and government customers throughout Nevada and Northern California.  R&E Fasteners maintains a small branch warehouse in Las Vegas and employs around 15 people.  Founded in 1967 and headquartered in Bridgeville, Pennsylvania, AFC Industries is a distributor of fasteners and Class C parts which specializes in providing customers with advanced supply chain management solutions.  The company operates six branches in:  Fairfield, Ohio; Groveport, Ohio; Temecula, California; Marietta, Georgia; Export, Pennsylvania; and Hartford, Connecticut.  Prior to the purchase of R&E Fasteners, AFC Industries generated net sales of around $55 million and employed around 75 people.  AFC Industries is a portfolio company of Incline Equity Partners (“Incline Equity”), a Pittsburgh-based private equity firm with more than $900 million of committed capital.  R&E Fasteners is the third bolt-on acquisition completed by AFC Industries since it was acquired by Incline Equity in March 2015.   
Purchase price: not available

 


 RICHARD P. HAGANAbout the Author:   RICHARD P. HAGAN

Richard P. Hagan is the president of Pinnacle Capital Corporation, a boutique investment banking firm which specializes in providing merger & acquisition advisory services to the global fastener industry.  Since its founding in 1993, Pinnacle has provided expert guidance and assistance to a broad range of fastener company clients – large and small, manufacturers and distributors, publicly-traded and privately-owned – in numerous countries around the world.  The majority of the projects undertaken by Pinnacle are sale / divestiture assign-ments.  The firm also provides expert advice and assistance with acquisitions, strategic investments, joint venture partnerships, debt & equity financings, business valuations and fairness opinions. 

Hagan has more than twenty-six years of international investment banking experience and has worked on a broad range of successful domestic and cross-border M&A transactions, corporate restructurings and capital raisings.  Prior to founding Pinnacle, Hagan managed the New York operations of a publicly-traded Australian investment bank.  He began his career in the fund management field in 1985 after earning a B.A. in Economics from the University of North Carolina at Chapel Hill and an M.B.A. in Finance from Fordham University in New York City.

 

Pinnacle is located at 82 Nassau Street, Suite 352, New York, New York 10038.  

Phone:  212-267-8200.  
Email:   rphagan@pinnaclecapitalcorp.com.

 

REPRINTED FROM DISTRIBUTOR’S LINK MAGAZINE | SPRING 2017

 

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