Los Angeles, CA —Platinum Equity announced today it has acquired substantially all material assets of ECKA Granules, a Germany-based manufacturer and distributor of metal powders to a broad range of industries. The acquisition which includes copper, aluminum and magnesium powder manufacturing plants and sales offices will, upon registration of all share transfers, include Australia, Austria, Bahrain, China, Germany, Slovenia, Switzerland, the U.K. and the United States.
Terms of the transaction were not disclosed.
Platinum also owns SCM Metal Products, Inc., a U.S. manufacturer and distributor of metal powders and pastes with production facilities in the United States and China. Platinum acquired SCM Metal Products, Inc. in November 2008.
“ECKA Granules is synonymous with quality products and leading-edge technology, and the brand aligns perfectly with SCM Metal Products, Inc.’s customer-focused business model,” said Jacob Kotzubei, the partner at Platinum who led the ECKA Granules transaction. “This acquisition is part of an ongoing strategy to expand our presence in the metal powders space. ECKA Granules is an excellent strategic fit in our portfolio.”
ECKA Granules and SCM Metal Products, Inc. are both expected to benefit from shared ownership, though each company will continue marketing under its own brand. SCM Metal Products, Inc. President Barton White will serve as CEO of both companies.
Mr. White noted that by combining SCM Metal Products, Inc. and ECKA Granules’ technical capabilities and complementary footprints, and supporting them both with Platinum’s operational and financial resources, this acquisition creates tremendous potential for growth.
“We can now offer customers a unique, international combination of manufacturing plants, technical support and direct sales and marketing channels in the United States, Asia and Europe,” explained Mr. White. “By expanding our reach and moving closer to customers around the world, we can decrease lead times and optimize our plants to improve the supply chain and ultimately increase value.”
The acquisition follows a period of financial distress and uncertainty at ECKA Granules triggered by the global economic crisis. ECKA Granules and certain of its subsidiaries initiated insolvency proceedings in August 2009.
“ECKA Granules’ employees, customers and suppliers have gone through a lot over the past 12-15 months and we are grateful for their hard work, patience and continued support,” said Mr. White. “We are committed to stabilizing and growing the business while charting a new path toward long-term health and profitability.”
About Platinum Equity
Platinum Equity 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 over 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.
About SCM Metal Products, Inc.:
SCM Metal Products, Inc. is a global leader in the manufacturing and distribution of copper based powder and pastes and copper oxide powders to a wide array of industries. SCM Metal Products, Inc. has manufacturing facilities in North Carolina, USA, and Suzhou, China.