“Italy’s Agrati Acquires Continental-Midland”
“LoneStar Group Acquires AmeriBolt”
“PennEngineering Acquires Heyco”
“Steel Dynamics Acquires Vulcan”
“All Integrated Solution Acquires Great Lakes Fastener”
All of these headlines have been published since July!! It seems like we are hitting another one of those periods where there are a multiple fastener company acquisitions. It almost seems like a race. There are several companies (and holding companies) looking to grow through acquisition and only so many companies for sale at a given time. At least at the right price. Companies looking to make acquisitions have to have their finger on the industry pulse, vigilantly scouring the fastener landscape looking for that next owner or company looking for an exit strategy.
Some larger companies have openly discussed their desire to grow by acquisition. Wurth acquired both DMB and House of Threads earlier in the year and I would expect they are looking for additional companies to buy, if the fit is right. They seemed to say as much on Fully Threaded Radio. I know many companies are still looking and it would not surprise me at all to hear about more acquisition activity before the Vegas Fastener Show.
One other headline that surprised me was the one that said Rockford Products was closing. There was an article in Global Fastener News regarding the closing and one line in particular caught my eye –
“I would say their biggest problem was probably mismanagement not having somebody or the right leadership in position to run the company profitably,” Rockford Area Economic Development Council VP of Development Stacy Bernardi told local TV station WREX. As the article stated, Rockford was also a fastener company acquired by a holding company. Also from the GFN article – The cold-formed fastener manufacturer was acquired in 2007 for $23.2 million in a bankruptcy auction by Michigan-based BlackEagle Partners LLC, a private equity firm. Subsequently BlackEagle had invested $30 million “without seeing any return on the investment” and the fastener manufacturer has defaulted on payments. The company is seeking potential buyers. So…there’s an acquisition for somebody!
We have seen a flurry of activity before the Vegas Show other years and that always leaves us all with something to talk about in the show aisles. I think there will be plenty of that to go around this year too.