LOS ANGELES, CA--(Marketwire - August 3, 2010) - Platinum Equity today announced that Acument Global Technologies has completed the sale of Acument's Avdel and Global Electronics & Commercial (GEC) business units to Asia Trading Company Limited, a company owned indirectly by funds advised by CVC Asia Pacific and Standard Chartered Private Equity Limited (SCPEL). Terms of the divestiture were not disclosed.
Avdel manufactures and markets blind fasteners (rivets) for customers around the world. Avdel is based in London with operations, sales and distribution capabilities in the UK, US, Canada and Western Europe.
GEC manufactures and markets fastener solutions for customers in the global electronics, industrial and commercial, construction and Asia automotive segments. GEC is based in Singapore with operations throughout Asia and in the US and Australia.
"Our ability to effect operational change in the business created an attractive opportunity to monetize part of our investment while at the same time continuing to support Acument's strategic plans," said Adam Cooper, senior vice president at Platinum who led the sale process. "Acument has succeeded in spite of significant obstacles. The sale of these units and the strength of the remaining business going forward reflect many years of hard work by countless people in and around the company."
Mr. Cooper applauded CVC/SCPEL as a valued transaction partner and said he believes Avdel and GEC will have great success under new ownership.
"This was a complex, multi-national divestiture and through an efficient and collaborative process we created a solution that works well for everyone," said Mr. Cooper.
Platinum acquired Acument in 2006 from Textron Inc. Beginning in late 2008 Acument faced rapidly falling revenue caused by economic dislocation and steep declines in global automotive production.
Over the nearly two years that followed, the Platinum operations team partnered closely with Acument management to develop and execute a global restructuring initiative.
As part of the restructuring effort, Acument aggressively scaled its cost structure while working closely with customers, lenders and other stakeholders to stabilize the business and ensure continuity of supply.
"Thanks to a lot of determination and a willingness to make some difficult but necessary decisions, we worked through the worst of the crisis and came out the other side stronger, more nimble and positioned to succeed," said Bryan Kelln, principal and head of portfolio operations at Platinum. "It was a collaborative effort, and a testament to Platinum's M&A&O approach and experience helping companies navigate through turbulent times."
Following the sale of Avdel and GEC, Acument remains a leader in engineered mechanical fastening products and services for the transportation market, including automotive, heavy truck and bus, off-highway equipment, military and aerospace.
"Acument is a much stronger competitor in the fastener industry today, thanks to a healthy balance sheet and a strong focus on improving operational performance," said Acument CEO Rick Dauch. "As a result, we are now well positioned to invest in and grow our core transportation businesses."
Acument was advised by Goldman Sachs, Paul Hastings and Baker & McKenzie. CVC/SCPEL was advised by Bank of America Merrill Lynch and Clifford Chance.
About Acument Global Technologies, Inc.
Headquartered in Troy, Mich., USA, Acument Global Technologies, Inc., is among the world's leading providers of mechanical fastening products and services for the transportation market, including engineered fastening systems, inventory management services, and application engineering support. With more than 2,600 employees at facilities in North America, South America and Europe, Acument supplies fastening products, systems and services to customers around the world. For more information about Acument Global Technologies: www.acument.com
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 over 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.