Anixter International has entered into an agreement to sell its OEM Supply – Fasteners business to American Industrial Partners for $380 million in cash. The transaction, already approved by Anixter’s Board of Directors, is expected to close during the second quarter of 2015.
The OEM Supply – Fasteners business (Fasteners) is a distributor and manufacturer of fasteners used in the heavy truck, power train, luxury automotive, agriculture, construction, and recreational vehicles markets. The business reported 2014 revenues of $939 million and operating profit of $39 million. Fasteners serves customers in 15 countries, and the average relationship among its 10 largest customers exceeds 17 years.
The Fasteners business includes 73 distribution centers, 12 quality labs and more than 1,900 employees worldwide. Upon closing, Fasteners will continue to be led by its current management team, with Ian Clarke assuming the role of President and Chief Executive Officer of the new company. The company’s headquarters will remain in the Chicago suburb of Glenview.
“We have great respect for Fasteners, which is widely recognized as a leading global OEM supplier,” said Eric Baroyan, Partner at AIP. “With long-standing customer relationships, strong management, a highly customized product portfolio and significant global growth opportunities, Fasteners is well-positioned to accelerate its business performance.”
American Industrial Partners invests in North American headquartered industrial companies with sales ranging from $100 million to $500 million and EBITDA up to $70 million. Transaction values are typically less than $500 million. The firm was founded in 1989 and is currently managing more than $1.1 billion in equity capital. American Industrial Partners is based in New York (www.americanindustrial.com).
“I am confident that we have found the right partner in AIP, who brings deep operating and industry expertise as well as additional financial resources, which will enhance our ability to meet the needs of our customers and capitalize on global growth opportunities,” said Ian Clarke, Executive Vice President – Fasteners at Anixter. “Today’s announcement reflects the value the Fasteners team has created, as well as AIP’s confidence in our strategy and exciting future. We look forward to working with AIP as we continue to build on our strong foundation and create long-term value for all of our stakeholders.”
Goldman, Sachs & Co. served as financial advisor and Sidley Austin served as legal counsel to Anixter. Baker Botts served as legal counsel to AIP.
© 2015 PEPD • Private Equity’s Leading News Magazine • 2-12-15