LOS ANGELES, CA (June 15, 2009) – Platinum Equity today announced it has completed the acquisition of the wire harness and electrical distribution business of Alcoa (NYSE:AA). Financial terms of the acquisition were not disclosed. The transaction was first announced on April 30.
The wire harness and electrical distribution business is the largest piece of Alcoa’s Electrical and Electronic Solutions division, and its customers include major domestic and international automotive original equipment manufacturers and tier-one suppliers.
“Closing this transaction with Alcoa is a significant step in our overall commitment to the auto sector,” said Platinum Equity Chairman and CEO Tom Gores. “The industry faces very tough challenges, and its transformation will require a major commitment and a lot of hard work. We are eager to roll up our sleeves and contribute to the effort."
The sale includes operations in 13 countries and involves approximately 17,500 employees.
“Platinum’s track record in helping organizations reach their full potential makes them the ideal partner for AEES,” said Jon A. Jensen, President of AEES. “We’re looking forward to collaborating with their experts to accelerate the repositioning of our automotive and commercial vehicle business for sustainable success.”
“AEES has great potential and is a perfect fit for Platinum’s operations-focused, long-term approach to creating value,” explained Phil Norment, partner at Platinum responsible for all aspects of operations at Platinum’s portfolio companies. “AEES has high-quality engineering and manufacturing capabilities, a valued customer base and talented employees around the world.”
“Our immediate priority is stabilizing the business and ensuring continuity of supply to AEES’ global customer base, while following a new path to long-term health and profitability,” said Mr. Norment.
Transition teams composed of Platinum’s in-house operations specialists have been engaged on a global basis with management on conversion plans to establish the newly acquired business as a standalone company.
“Platinum’s approach to investing requires deep understanding of a company’s operations very early in the acquisition process,” explained Mr. Norment. “We devote considerable time, energy and resources to learning the business and developing long-term strategic plans well before a transaction closes. Our commitment to operations throughout the process promotes seamless transition and integration after closing, and keeps the organization focused on serving customers and delivering high-quality products. “
Plans for naming the business and other details of the transition will be announced over the coming weeks and months.
Platinum’s M&A&O® approach to investing focuses on acquiring businesses that need operational support and can benefit from Platinum’s extensive in-house capabilities and expertise in transition, integration and operations. Through nearly 100 acquisitions in the complex operational turnaround market, the firm has a consistent record of value creation.
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, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.