NORTH AMERICAN NEWS
by JohnWolz, editor
GlobalFastenerNews.com
Fastener acquisitions kick into high gear
Stanley Black & Decker occupied center stage in the latest round of fastener industry acquisitions, buying one prominent company in the U.S., and reportedly bidding on another in Singapore.
2010 when Asia Trading Company Ltd purchased the Avdel and Global Electronics & Commercial divisions of Acument Global Technologies Inc for an estimated US$350 million (285 million euros). Infastech’s corporate headquarters are located in Hong Kong, with global operations managed from Singapore. No deal has been finalized. Elsewhere Validor Capital, a New York private equity firm, acquired
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Denton, TX-based EDSCO Fasteners. Terms were not disclosed. Founded in 1985, EDSCO manufactures anchor bolts for large steel structures. The company operates three facilities in Denton; Charlotte, NC; and Spanish Fork, UT. EDSCO ships to utility, cellular and structural steel sites around the world. Validor installed operating executive Jeffrey Pieper as president of EDSCO replacing founder Andrew Gannon. The remaining members of EDSCO’s management team were retained, including vice president Don Searcy. Fastener supplier Precision Aerospace Components Inc
acquired the assets of Fastener Distribution and Marketing Company (FDMC). FDMC is the parent company of Aero-Missile Components (AMC), which provides fasteners and other components to the military and aerospace industries; and Creative Assembly Systems (CAS), which supplies fasteners,
tanley Black & Decker is a potential bidder for Infastech Ltd, a Singapore-based industrial fastener manufacturer with revenues of more than US$500 million (407 million euros), Reuters reports. Infastech was formed in August
tooling and other products to the transportation, housing infrastructure and white goods markets. FDMC president Richard McVaugh will assume the role of
president of each of the Precision Aerospace subsidiaries. Precision Castparts Corp agreed to acquire aero-structures
manufacturer Klune Industries for an undisclosed cash sum. North Hollywood, CA-based Klune will be added to PCC’s ‘fastener products’ segment, which reported US$1.7 billion (1.4 billion euros) in revenue during fiscal 2012. PCC CEO Mark Donegan noted the fastener synergy in
announcing the agreement. “Like Centra and Primus before that, Klune expands our reach into the widely fragmented aero-structures market,” stated Donegan. He said Klune facilities in California and Washington are located close to existing PCC aero-structures plants, giving PCC “operational and geographical leverage.” “From a top-line perspective, Klune’s product line will
significantly increase our dollar content on the Boeing 787, and they have solid positions on other major aircraft platforms, such as the Boeing 737 and Gulfstream G650,” added Donegan. Klune manufactures aluminum, nickel, titanium, and steel
aero-structures, with a focus on complex forming, machining, and assembly of aero-structure parts. The company employs approximately 740 workers at three facilities: North Hollywood; Spanish Fork, UT; and Kent, WA.
Economist at NFDA: Invest now ‘aggressively’ in your company
Economist Alan Beaulieu told National Fastener Distributors Association members it is time to invest in your companies to take advantage of a growing economy.
“Exports are up. Banks are lending. Retail sales are up. Chinese companies are actually moving to the U.S.” The economy will grow until the middle of 2013 and then there will be a bear stock market in the second half of the year, followed by a mild recession during 2014, Beaulieu predicted. From 2015 the economy will boom until another recession in 2017. Beaulieu pointed out that historically there are recessions every nine to 13 years. U.S. companies have put away US$2 trillion to invest and banks have US$1.5 trillion to loan, he said. After cuts to become leaner during the recession, “companies
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are right sized,” Beaulieu observed. Fastener companies should now focus on investments in growing for the stronger economy. If you wait until inflation kicks in, such investments will be more expensive, he forewarned. How much should you invest in your company now? “Until you can’t sleep at night,” Beaulieu said. Companies that barely survived the recession could be in
Fastener + Fixing Magazine • Issue 76 July 2012
eaulieu declared: “The economy is heating up.” He added: “Spend money on your business. Be aggressive.” Beaulieu - of the Institute for Trend Research - pointed out that the leading economic indicators are up.
trouble now because they don’t have cash to rebuild. “Economic recoveries can finish the job,” he said of the possibility of weak companies closing even during a growing economy. Coming next is inflation. CEOs need to find ways to raise
prices and fix costs. Employees who live paycheck to paycheck will face greater problems when the renewed inflation hits. Costs will rise 7% to 10%. To compensate employees during an inflationary period, Beaulieu suggested establishing bonus systems based on realistic quarterly goals and employee involvement. He recommended three goals per quarter. One goal for fastener CEOs is to operate a company with “less
people and more business.” Despite the U.S. economic recovery, there are problem areas.
Europe’s financial troubles could lead to a recession there yet this year. China’s housing and inflation bubbles could burst. Oil prices could break through US$120. The U.S. dollar could lose all credibility. The economy will not change no matter which political party
controls the White House and Congress after the November 2012 election, Beaulieu stated.
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