Successful Eight-Year
Stewardship of Detroit-based Fastener Company Highlights Value of Platinum
Equity’s Operations Capabilities and Turnaround Expertise
LOS ANGELES, CA (June 23, 2014) – Platinum Equity today
announced the sale of Acument Global Technologies, a leading provider of
mechanical fastening products and services for the transportation market, to
Fontana Gruppo, an Italian manufacturer of fastening solutions. Financial terms
of the transaction were not disclosed.
“Acument is a healthy, thriving business today and
will be a great fit within Fontana’s portfolio,” said Platinum Equity Partner Bob
Wymbs, who led the sale process. “Like
many automotive suppliers, the company faced a lot of ups and downs over the
past eight years. This successful
outcome reflects the hard work done by the people at Acument and is a testament
to Platinum Equity’s ability to steer its portfolio companies through good
times and bad.”
Founded by Tom Gores, Platinum
Equity also owns Detroit-area businesses Active Aero, Chassix, and the Detroit
Pistons and Palace Sports & Entertainment (PS&E).
Platinum Equity acquired Textron Fastening Systems in
2006 from Textron Inc. and established it as a standalone business under the
Acument brand. Beginning in late 2008 Acument faced rapidly falling revenue caused
by economic dislocation and steep declines in global automotive production.
Platinum Equity worked with Acument management to develop and execute a global
restructuring initiative.
“At a time when a lot of suppliers were going out
of business, we buckled down and made some difficult but necessary decisions in
order to survive and ensure continuity of supply,” said Bryan Kelln, Partner
and President of Portfolio Operations at Platinum Equity. “Acument aggressively scaled its cost
structure while working closely with customers, lenders and other key
stakeholders to stabilize the business.”
In August 2010 Acument sold its non-core Avdel and
Global Electronics & Commercial (GEC) business units, which helped provide
needed working capital and reduced Acument’s debt.
It also
intensified its focus on lean manufacturing, taking unnecessary costs out of
the supply chain.
Acument CEO Patrick Paige reflected on the company’s
ability to survive the crisis.
“Acument emerged from the
crisis a much stronger competitor in the fastener industry, with a healthy
balance sheet and an even greater focus on operational performance and customer
service,” said Mr. Paige. “As a result, we were well positioned to invest in
and grow our transportation businesses going forward.”
At the end of 2010, as vehicle production was
rebounding in North America, Acument re-launched an idled plant in Fenton,
Michigan, and invested $20 million to replace an antiquated manufacturing
facility in Brazil.
“We worked with the management team to stay
disciplined on costs, while making smart investments that allowed Acument to
capitalize on improving market conditions,” said Mr. Kelln. “We attacked the rebound with the same sense
of urgency used to weather the crisis. Ultimately, that collaborative,
operationally intensive approach helped Acument succeed.”
Learn more about Platinum Equity's investment in Acument. Watch Video »
See how Platinum Equity helped Acument to survive the economic crisis. Watch Video »
About Platinum Equity
Founded by
Tom Gores in 1995, Platinum Equity is a global investment firm with more than
$7 billion in assets under management and a portfolio of operating companies
that generated approximately $15 billion in revenue in 2013. Platinum Equity specializes in mergers, acquisitions and operations – a
trademarked strategy the firm calls M&A&O® – acquiring and
operating companies in a broad range of business markets, including
manufacturing, information technology, telecommunications, transportation and
logistics, media, equipment rental, metals and other industries. Over the past
19 years Platinum Equity has completed more than 150 acquisitions.
