Acquisition Represents Extension of Platinum’s Global Reach; Unit Serves Customers in 150+ Countries, Has Revenue of Approximately $1.8 Billion
LOS ANGELES (June 1, 2006) – Platinum Equity announced today that it has signed a definitive agreement to acquire Textron Fastening Systems, a premier global provider of fastening technologies and services to customers in a broad range of industries.
The seller is Textron Inc. (NYSE: TXT), which announced in late 2005 that it would sell the $1.8 billion revenue unit as part of a strategic divestiture of non-core manufacturing businesses. Platinum will pay $630 million in cash for the business, plus the assumption of certain liabilities. The transaction is expected to close during the third quarter of 2006.
“We understand that this was a very competitive sale process, and we appreciate Textron’s belief in us as the right acquirer for TFS,” said Tom Gores, chairman and chief executive officer of Platinum Equity.
“We’re acquiring a quality business with talented people, and we think this will be a great platform for growth in a consolidating market,” Mr. Gores said. “Everyone will benefit from our smooth transition process and our long-term plans to build this business.”
The new business will be renamed, and details about the new name and brand image will be announced as the transition unfolds following completion of the acquisition.
Headquartered in Troy, Mich., Textron Fastening Systems is a premier global provider of full-service fastening systems to customers in the aerospace, automotive, construction, electronics, industrial equipment and non-automotive transportation industries.
It offers a wide range of value-based fastening solutions, engineered fastening systems, state-of-the-art assembly technology, and inventory management and application engineering services. The company has more than 9,000 employees serving customers in more than 150 countries worldwide. Revenue in 2005 was approximately $1.8 billion.
Textron Fastening Systems “has really differentiated itself as a leader” in the $38 billion global mechanical fastener market, said Matt Young, senior vice president for mergers and acquisitions at Platinum Equity.
“TFS is widely recognized for its leadership in product development and technology,” Mr. Young said, pointing out that the company has a strong engineering and development capabilities as well as partnerships with other innovators like TZ Limited on Intevia® Intelligent Fastening Technology. “We’re acquiring a great company with a strong reputation for superior technology, quality and innovation.”
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, manufacturing, and entertainment distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has acquired more than 60 businesses with more than $13 billion in aggregate annual revenue.
Textron Inc. is a $10 billion multi-industry company operating in 33 countries with approximately 37,000 employees in continuing operations. The company leverages its global network of aircraft, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft, Jacobsen, Kautex, Lycoming, E-Z-GO and Greenlee, among others. More information is available at www.textron.com.
About Textron Fastening Systems
Headquartered in Troy, Mich., USA, Textron Fastening Systems Inc. is a leading provider of value-based fastening solutions, engineered fastening systems, state-of-the-art assembly technology, and inventory management and application engineering services. With 9,000 employees worldwide, Textron Fastening Systems supplies value-added products, systems and services to customers in more than 150 countries.
Mark Barnhill, Platinum Equity