About 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-five 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
Fastener Company Acquisitions Completed During the First Half of 2017
In this issue, Link Magazine will briefly review all the fastener company acquisitions – a total of 21 worldwide – completed during the first six months of 2017. 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.
On January 3, 2017, Simpson Manufacturing Co. Inc. (“Simpson”) purchased Gbo Fastening Systems AB, doing business as Gunnebo Fastening Systems (“Gunnebo”). Founded in 1764 and headquartered in Gunnebo, Sweden, Gunnebo is a manufacturer and distributor of construction fasteners sold primarily in the Nordic countries, Russia and Eastern Europe. The company’s product offering includes nails, screws, collated fasteners, anchors and connectors. Gunnebo operates manufacturing plants in Sweden and Poland, employs approximately 220 people and generated net sales of $42.6 million in calendar 2016. Through its subsidiary Simpson Strong-Tie Company Inc., Simpson (NYSE: SSD) designs and manufactures wood and concrete construction products for new construction, retro-fit and DIY (do-it-yourself) applications. The company’s product range includes fastening systems, anchors, connectors, truss plates, adhesives and powder actuated tools. Founded in 1956 and headquartered in Pleasanton, California, Simpson operates from 23 manufacturing locations and distributes its products globally. The company employs more than 2,600 people worldwide and generated net sales of $860.7 million in calendar 2016. Purchase price: $10.2 million
On January 12, 2017, NORMA Group SE purchased Indústria Metalúrgica de Agueda Lda., doing business as Lifial. Founded in 1988 and located in Agueda, Portugal, Lifial is a manufacturer of heavy duty clamps, pipe supporting clamps and U-bolt clamps for construction, agricultural and general industrial applications. The company sells its trademarked clamps to end-users and distributors across Europe and North Africa. Lifial employs approximately 100 people and generates annual net sales of around €8 million. NORMA Group was formed in 2006 with the merger of Rasmussen GmbH of Germany and ABA Group AB of Sweden. 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. The company operates 28 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. Purchase price: not available
On January 13, 2017, LFM Capital LLC purchased EDSCO Fasteners LLC (“EDSCO”). Founded in 1985 and headquartered in Denton, Texas, EDSCO is a manufacturer of foundation anchor bolts and cages for critical infrastructure applications. The Company’s anchoring systems are predominantly embedded in a concrete foundation upon which a large steel structure such as a power transmission pole, cell phone tower, pedestrian bridge pole or large sign structure pole can be securely attached. In addition to the flagship operation in Denton, Texas, EDSCO maintains fabrication / warehouse facilities in Harrisburg, North Carolina and Spanish Fork, Utah. Founded in 2012 and located in Nashville, Tennessee, LFM Capital is a lower middle market private equity firm with $110 million of committed capital under management. The seller of EDSCO was Validor Capital LLC, a Boca Raton, Florida-based private equity firm. Purchase price: not available
On January 24, 2017, EJOT Holding GmbH & Co. KG (“EJOT”) purchased Sormat Oy. Founded in 1970 and headquartered in Rusko, Finland, Sormat manufactures heavy load anchors and related accessories used primarily for concrete, brick and stone applications. A privately-owned company, Sormat employs more than 80 people and its branded products are sold worldwide in more than 40 countries. Founded in 1922 and headquartered in Bad Berleburg, Germany, EJOT manufactures a broad range of externally-threaded fasteners for the European automotive, general industrial and construction markets. The company’s diverse, highly-engineered and proprietary fastener products are used in metal, wood and plastic applications. A privately-owned company, EJOT operates 32 subsidiaries on every continent, employs more than 3,000 people worldwide and generated net sales of approximately €450 million in calendar 2016. Purchase price: not available
On January 24, 2017, SouthernCarlson Inc. purchased Air King Fastening Systems Inc. (“Air King”). Founded in 1995 and located in Circle Pines, Minnesota (north of Minneapolis), Air King is a distributor of fasteners, fastening power tools and general construction supplies for the residential and commercial construction markets. A privately-owned company, Air King carries numerous premier fastener and power tool brands including Duo-Fast, Bostitch, Hitachi, Paslode, Quik Drive and Simpson Strong-Tie. SouthernCarlson was formed in November 2014 with the merger of Southern Fastening Systems Inc. and Carlson Systems Holdings Inc. SouthernCarlson is a super-regional distributor of fasteners, power tools, packaging equipment & supplies and construction supplies & consumables. The company is headquartered in Omaha, Nebraska, employs more than 900 people and operates more than 150 stores / locations across the United States. SouthernCarlson is a portfolio company of Kelso & Company, a New York City-based private equity firm with more than $11 billion of assets under management. Purchase price: not available
On February 6, 2017, Motor City Fastener Inc. (“Motor City”) purchased EMCO Inc. Founded in 1954 and located in Charlotte, North Carolina, EMCO is a distributor of electrical, mechanical, automation and fluid power products to companies that design, manufacture and repair / upgrade production machinery. A privately-owned company, EMCO provides customers with value-added services including vendor-managed inventory, consignment and kitting programs, along with engineering and technical support. Founded in 1968 and headquartered in Hazel Park, Michigan, Motor City is a value-added distributor of fasteners and Class C parts, supplying the automotive, trucking, defense and general industrial markets. The supply chain management services provided by Motor City include bin-stoking with scale / weight-based automatic electronic ordering and programed vending machines, all marketed under the CribBoss™ brand. Following the transaction closing, the combined companies were renamed Motor City Industrial LLC. Motor City Industrial is a portfolio company of Kian Capital Partners LLC, a Charlotte, NC-based private equity firm and Oakland Standard Co., a Birmingham, Michigan-based private equity firm. Purchase price: not available
On February 23, 2017, Titanox Industrie SA (“Titanox”) purchased Boztas Bursa Connection Elements Ltd. (“Boztas Bursa”). Founded in 2013 and located in Bursa Turkey, Boztas Bursa is a distributor of fasteners and Class C parts, specializing in providing customers with advanced supply chain management services. The company supplies numerous automotive OEMs and their Tier suppliers in Turkey, along with manufacturing customers in the electronics, furniture and general industrial markets. Founded in 1975 and located in Bezons, France (outside Paris), Titanox is a distributor of fasteners and assembly hardware, supplying a diverse range of electronics, high technology, medical equipment and general industrial OEMs. The Titanox product range includes: blind rivets & installation tools; weld nuts & studs; welding machines; and inserts for plastic. The privately-owned company’s rivet products are marketed under the RIVELIT® brand name. The existing Boztas Bursa management team will remain in place following the transaction closing and the company name will be changed to Titanox Turkey Ltd. Purchase price: not available
On March 3, 2017, Tioga Pipe Inc. purchased Mackson Inc. Founded in 1984 and located in Rock Hill, South Carolina, Mackson is a distributor of nuclear-certified fasteners, structural steel, weld wire and made-to-print components, supplying the commercial and military nuclear markets. Mackson specializes in difficult-to-source fasteners and components and also provides supply chain management services to OEM and MRO nuclear customers. Founded in 1946 and headquartered in Philadelphia, Pennsylvania, Tioga Pipe is a distributor of pipe, fittings, flanges and related products, supplying the power generation, oil refining, gas & chemical and shipbuilding industries. In addition to its Philadelphia warehouse, the company maintains branch warehouses and sales offices in Houston, Texas and Chattanooga, Tennessee. Following the transaction closing, Mackson was renamed Mackson Nuclear LLC and the company will continue to operate from its existing facility in Rock Hill, SC. The seller of Mackson was MetalTek International Inc. of Waukesha, Wisconsin. Purchase price: not available
On March 6, 2017, Lindstrom LLC purchased the assets of the small packaged fastener and master distribution business (the “Packaged Fastener Division”) of Hodell-Natco Industries Inc. (“Hodell-Natco”). Founded in 1984 and headquartered in Cleveland, Ohio, Hodell-Natco is a distributor of fasteners and chain products with six warehouses strategically located across the United States. A privately-owned company, Hodell-Natco stocks more than 40,000 SKUs and specializes in products for the heavy construction, metal building manufacturing, waterworks and general industrial markets. Following the transaction closing, the Packaged Fastener Division (located in Cleveland) will be moved to a new Lindstrom distribution center in Cleveland. Founded in 1972 and headquartered in Blaine, Minnesota (outside Minneapolis), Lindstrom is the largest master distributor (selling exclusively to distributors) of metric fasteners in the United States. The company operates five branch warehouses in: Elgin, Illinois; Mississauga, Ontario; New Windsor, NY; Greer, SC; and Grand Prairie, Texas. In addition, the company’s Mega Metric business unit in Greer, SC manufactures large diameter, hot-forged and machined fasteners in both metric and inch diameters. Lindstrom is a portfolio company of Harbour Group, a St. Louis, Missouri-based private equity firm which invests in middle-market US companies. Purchase price: not available
On March 31, 2017, Fastenal Company (Nasdaq: FAST) purchased Manufacturers Supply Company (“Mansco”). Founded in 1928 and headquartered in Hudsonville, Michigan, Mansco is a distributor of production fasteners and MRO consumables, specializing in supplying commercial furniture OEMs. In addition to a full line of fastener products, Mansco provides customers with customized packaging, kitting and light assembly services. The privately-owned company operates branch warehouses in Madison, Alabama and McAllen, Texas. Mansco generated net sales of approximately $50 million in calendar 2016, largely from its flagship Michigan location. Founded in 1967 and headquartered in Winona, Minnesota, Fastenal is one of the largest fastener distributors in North America with approximately 2,500 stores (located primarily in North America) and 14 distribution centers worldwide. The company employs more than 19,600 people and generated net sales of $3.96 billion in calendar 2016. Fastener products represent 37% of Fastenal’s total net sales, with the balance derived from a diverse range of Class C parts and consumable industrial supplies. Purchase price: $61.2 million
On March 31, 2017, SouthernCarlson Inc. purchased River City Building Supply Inc. (“River City”). Founded in 2001 and headquartered in Sacramento, California, River City is a distributor of fasteners, fastening power tools and a broad range of construction supplies for the residential and commercial construction markets. The company carries numerous premier fastener and power tool brands including Simpson-Strong-Tie, Hitachi, Dewalt, Powers Fasteners, Senco and many others. River City has three branch stores in Livermore, Modesto and San Jose, California. SouthernCarlson is a super-regional distributor of fasteners, power tools, packaging equipment & supplies and construction supplies & consumables. The company is headquartered in Omaha, Nebraska, employs more than 900 people and operates more than 150 stores / locations across the United States. SouthernCarlson is a portfolio company of Kelso & Company, a New York City-based private equity firm with more than $11 billion of assets under management. Purchase price: not available
On April 1, 2017, Lesjöfors AB purchased Spiros AB. Founded in 1989 and located in Bromma, Sweden, Spiros is a manufacturer of specialty springs, wire forms and stamped metal components. The company supplies electronics, high technology, appliance and general industrial customers concentrated in the Nordic region and Western Europe. Spiros generates annual net sales of SEK 7.0 (US$0.9 million) and following the transaction closing its operations will be transferred to Spiralspecialisten, a wholly-owned subsidiary of Lesjöfors located in nearby Tyresö, Sweden. Founded in 1852 and headquartered in Karlstad, Sweden, Lesjöfors is a global manufacturer of springs, wire forms and stampings. The company has 24 manufacturing plants in 12 countries and employs 1,600 people worldwide. In calendar 2016, Lesjöfors generated net sales of SEK2.0 billion (US$248 million). Lesjöfors is a wholly-owned subsidiary of Beijer Alma AB (Nasdaq OMX Stockholm: BEIA). Headquartered in Uppsala, Sweden, Beijer Alma is a manufacturer of specialty springs & cables and a distributor of industrial supplies & consumables. Purchase price: not available
On April 4, 2017, Audax Group Inc. purchased Fastener Distribution Holdings LLC (“FDH”). Headquartered in Marina del Rey, California, FDH is a distributor of aerospace fasteners and is comprised of two business units – Aircraft Fasteners International LLC (“AFI”) and Arlington International Aviation Products LLC (“AIAP”). Founded in 1964 and located in Marina del Rey, AFI is a stocking master distributor of aerospace-quality nuts, threaded inserts, wire thread inserts and key-locking studs. Founded in 2002 and located in Arlington, Texas, AIAP is a full-line distributor of aerospace fasteners and consumable hardware, supplying commercial and military OEMs and their subcontractors. AIAP also provides its customers with kitting and customized packaging services. Founded in 1999 and headquartered in Boston, Massachusetts, Audax Group is a diversified investment firm with three business platforms – private equity investments, mezzanine finance and senior debt finance. Audax Group manages more than $11.5 billion of assets. The seller of FDH was Housatonic Partners, a San Francisco-based private equity firm with more than $1 billion of committed capital under management. Purchase price: not available
On April 24, 2017, HEICO Corporation (NYSE: HEI) purchased 80.1% of the equity interest of LLP Enterprises LLC, doing business as Air Cost Control. Founded in 2000 and headquartered in Sunrise, Florida, Air Cost Control is a distributor of aviation electrical interconnect products such as connectors, wire & cable, fastening systems and harnesses, along with a wide range of electromechanical parts. In addition to the main warehouse in Sunrise, Florida, the company maintains branch warehouses in Toulouse, France and Hamburg, Germany. Air Cost Control employs approximately 130 people and generates annual net sales of approximately $80 million. The two founders will retain 19.9% equity ownership and continue to manage the company following the transaction closing. Founded in 1957 and headquartered in Hollywood, Florida, HEICO is comprised of two operating segments – the Flight Support Group and the Electronic Technology Group. The Flight Support Group is a distributor, manufacturer and refurbisher of FAA-approved aftermarket aircraft replacement components. The Electronic Technology Group manufactures electrical and electro-optical systems & components for the aerospace, defense, communications and computer markets. HEICO employs around 4,700 people and generated net sales of $1.38 billion in the 12 months ended October 31, 2016. Purchase price: $80.8 million (for 80.1% ownership)
On April 28, 2017, Park-Ohio Holdings Corp. (“Park-Ohio”) purchased Aero-Missile Components Inc. (“Aero-Missile”). Founded in 1948 and headquartered in Bensalem, Pennsylvania (outside Philadelphia), Aero-Missile is a full-line distributor of fasteners and Class components, supplying the commercial and military aerospace markets. The company’s product range includes bolts, screws, pins, nuts and threaded inserts. Aero-Missile is an authorized distributor for several of the largest aerospace fastener manufacturers including SPS Technologies, Arconic Fastening Systems (formerly Alcoa), Pilgrim Screw, Bristol Industries and ESNA. The company has a branch warehouse in Oxford, Alabama. Founded in 1961 and headquartered in Cleveland, Ohio, Park-Ohio manufactures a diverse range of engineered products and assembly components. The company’s Supply Technologies LLC business unit is a distributor of fasteners and Class C parts, specializing in providing customers with advanced supply chain management solutions. Supply Technologies operates 65 logistics service centers around the globe and generated net sales of $502 million in calendar 2016. The Aero-Missile acquisition was actually completed by Apollo Aerospace Components LLC, the aerospace fastener holding company of Supply Technologies. Purchase price: $10.5 million
On May 10, 2017, Chicago Rivet & Machine Co. (“Chicago Rivet”) purchased certain assets of the Rivet Division of American Jebco Corporation. Founded in 1903 and located in Franklin Park, Illinois, American Jebco is a niche manufacturer of externally-threaded fasteners, solid & semi-tubular rivets and made-to-print specialty cold headed parts. Following the transaction closing, the production of American Jebco’s Rivet Division was transferred to one of Chicago Rivet’s domestic manufacturing plants. Founded in 1920 and headquartered in Naperville, Illinois, Chicago Rivet (NYSE: CVR, not registered, trading privileges only) is a domestic manufacturer of solid & semi-tubular rivets, cold headed specialty parts and screw machine components. The company also designs and produces rivet setting machines, automated assembly systems and rivet machine tooling. The principal market for Chicago Rivets’ products is the North American automotive industry. The company operates four manufacturing plants in Naperville, Madison Heights, Michigan, Albia, Iowa and Tyrone, Pennsylvania. Chicago Rivet employs approximately 230 people and generated net sales of $37 million in calendar 2016. Purchase price: not available
On May 18, 2017, AFC Holdings Inc., doing business as AFC Industries, purchased Accurate Fasteners Inc. Founded in 1960 and located in Boston, Massachusetts, Accurate Fasteners is a full-service distributor of fasteners and Class C components, supplying a variety of end-markets including medical equipment, electronics, information technology and general industrial OEMs. The company provides numerous value-added services including inventory management, kitting and specialty packaging & labeling. Founded in 1967 and headquartered in Bridgeville, Pennsylvania, AFC Industries is a distributor of fasteners and Class C components which specializes in providing customers with advanced supply chain management solutions. Prior to the purchase of Accurate Fasteners, AFC Industries operated eight distribution warehouses and was comprised of five business units: i) Advanced Fastener in Fairfield and Groveport, Ohio; ii) Dell Fastener in Bridgeville, PA and Marietta, Georgia; iii) Gateway Fasteners in Export, PA; iv) Eckart & Finard in Hartford, Connecticut; and v) R&E Fasteners in Reno and Las Vegas, Nevada. Following the transaction closing, the president of Accurate Fasteners will remain with the company and manage AFC Industries’ operations in New England. AFC Industries is a portfolio company of Incline Equity Partners, a Pittsburgh, PA-based private equity firm with $300 million of committed capital under management. Purchase price: not available
On May 24, 2017, Bufab AB purchased Thunderbolts Group Limited (“Thunderbolts”). Founded in 1991 and located in Southampton, England, Thunderbolts is a distributor of fasteners, Class C parts and industrial supplies to customers concentrated in the south of England. The company supplies numerous end-markets including construction, medical equipment, marine and general industrial OEMs. A privately-owned company, Thunderbolts employs 19 people and generated net sales of £2.9 million (US$3.8 million) in calendar 2016. Founded in 1977 and headquartered in Värnamo, Sweden, Bufab (Nasdaq OMX Stockholm: BUFAB) is a full-service distributor of fasteners and Class C parts which specializes in providing customers with advanced supply chain management services. The company operates 34 wholly-owned subsidiaries in 24 countries and employs around 1,000 people worldwide. In calendar 2016, Bufab generated net sales of SEK 2.85 billion (US$353 million). Purchase price: not available
On June 1, 2017, Nautic Partners LLC purchased Endries International Inc. (“Endries”). Founded in 1970 and headquartered in Brillion, Wisconsin, Endries is a distributor of fasteners and Class C parts, specializing in providing customers with advanced supply chain management solutions. The company provides its predominantly OEM customer base with robust bin-stocking programs including automatic electronic ordering based on RFID (radio frequency identification) technology. In addition to the Wisconsin flagship location, Endries operates eight distribution centers in the United States (6), Canada and Mexico. Endries employs approximately 700 people and generated net sales of more than $250 million in fiscal 2016. The Endries management team participated as principals in this deal and will remain in place following the transaction closing. Founded in 1986 and located in Providence, Rhode Island, Nautic Partners is an industry-focused private equity firm with $3.3 billion of assets under management. The seller of Endries was Ferguson Enterprises Inc. (“Ferguson”), the largest wholesale distributor of commercial and residential plumbing supplies and pipe, valves & fittings in the United States. Ferguson is a wholly-owned subsidiary of Wolseley plc (London Stock Exchange: WOS). Purchase price: not available
On June 20, 2017, Novaria Holdings LLC (“Novaria Group”) purchased Space-Lok Inc. Founded in 1962 and located in Gardena, California, Space-Lok is a manufacturer of bolts, nuts and specialty components for the commercial and defense aerospace markets. The company’s extensive in-house manufacturing capabilities include cold & hot heading, CNC machining, EDM machining, thread rolling, tapping, gun-drilling, grinding and tool making. Space-Lok is an approved supplier to most of the largest aerospace OEMs and its products are used in a broad range of critical structural applications. Founded in 2011 and headquartered in Fort Worth, Texas, Novaria Group is the holding company for seven (prior to the Space-Lok acquisition) aerospace fastener and component manufacturing companies. The company’s other aerospace fastener business units are: i) Elastic Stop Nut Corporation of America, doing business as ESNA (nuts, bushings & fittings); ii) John Hassell Inc. (bolts & screws); and iii) Electronic Hardware Ltd. (specialty screw machine parts). Novaria Group is a portfolio company of Rosewood Private Investments Inc., a Dallas, Texas-based private equity firm which is owned by the Caroline Hunt Trust Estate. Purchase price: not available
On June 28, 2017, Penn Engineering & Manufacturing Corp. (“PennEngineering”) purchased Whitesell Formed Components, Inc. (“WFC”), a wholly-owned subsidiary of Whitesell Corporation. WFC markets and sells its products under the well-known brand name FabriSteel™ and the company will be referred to hereinafter as “FabriSteel”. Founded in 1920 and headquartered in Waterford, Michigan, FabriSteel manufactures a proprietary line of piercing, clinching and riveting fasteners for the North American automotive and transportation markets. The FabriSteel product range includes self-piercing clinch nuts, pierce nuts, rivet nuts, self-piercing rivet studs, clinch studs and rivet studs. FabriSteel operates three manufacturing plants in Waterford, Romulus and Novi, Michigan. Included in this sale was Whitesell’s distribution center in Vaughan, Ontario, which is known as “Whitesell Canada”. Founded in 1942 and headquartered in Danboro, Pennsylvania, PennEngineering is a designer and manufacturer of highly-engineered fasteners used primarily for sheet metal fabrication and plastic applications. The company’s branded and proprietary products include nuts, threaded inserts, screws, pins, studs and standoffs, along with installation tools and equipment. PennEngineering is a portfolio company of Tinicum Inc., a New York City-based private equity firm with more than $1.6 billion of committed capital under management. Purchase price: not available
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Fastener Company Acquisitions Completed During the Second Half of 2016
Fastener Company Acquisitions Completed During the First Half of 2016
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