Partners Group has signed an agreement to acquire a controlling stake in Dynacast International, a precision die caster and metal injection molder, at an enterprise value of $1.1 billion. Partners Group is joined in the acquisition by Kenner & Company, an existing shareholder, and the company’s management team, which will both roll over significant equity stakes into the new transaction which is expected to close in February 2015.
Dynacast is being acquired by Partners Group from a consortium of investors that purchased the company in 2011. The consortium includes Izurium Capital Management, W Capital Partners, Laurel Crown Partners, Kenner & Company, Babson Capital Management, Macquarie Capital and members of the management team.
Dynacast is a manufacturer of engineered metal components using precision die-casting and metal injection molding technologies to produce customized, high-volume components with complex shapes and tight tolerances. The company’s products are used in the automotive, telecommunications, computing, consumer electronics, and healthcare industries. Dynacast is headquartered in Charlotte, NC and has 23 manufacturing plants in 16 countries worldwide (www.dynacast.com).
“Dynacast has a long and rich history of continuously refining our proprietary manufacturing technologies, in-house tooling expertise and innovative design processes to manufacture highly complex metal components in a fast, repeatable and precise manner to provide greater value to our customers,” said Simon Newman, Dynacast’s Chief Executive Officer. “With the investment led by Partners Group, we have the strategic support and capital backing to enter into the next phase of growth for our company.”
Partners Group is a global private markets investment management firm with over $40 billion of assets under management in private equity, private real estate, private infrastructure and private debt. The firm is headquartered in Zug, Switzerland, and has over 700 employees across 18 offices around the globe (www.partnersgroup.com).
“We are really looking forward to working with Simon and the rest of Dynacast’s management team in this next stage of the company’s development,” said Joel Schwartz, Managing Director at Partners Group in New York. “Dynacast already has a truly differentiated position as a global supplier in the precision metal components marketplace and we see exciting potential for further expansion. We believe our global platform and deep network of industry relationships make us the ideal partner to back management’s vision for the business going forward, particularly through our assistance with acquisitions and with the deepening of the company’s integrated, worldwide approach.”
The transaction has fully committed financing from JPMorgan Chase Bank, Barclays and Macquarie Capital. J.P. Morgan Securities, Barclays, Macquarie Capital, Goodwin Procter and KPMG are advising Partners Group on the transaction.
Morgan Stanley and Co. served as exclusive financial advisor to Dynacast while Hunton & Williams and Davis Polk & Wardwell served as legal counsel to Dynacast.
2014 PEPD • Private Equity’s Leading News Magazine • 12-17-14
