TriMas Corporation has an agreement to buy California-based Allfast Fastening Systems Inc. for approximately $360 million, and will incorporate the manufacturer of solid and blind rivets, blind bolts, temporary fasteners, and installation tools for civil, defense, and general aviation manufacturing with its Aerospace portfolio.
“Adding Allfast to our aerospace platform increases our leadership and growth potential in the aerospace industry,” stated TriMas president and CEO Dave Wathen. “This acquisition significantly accelerates our portfolio transformation focused on our strategic growth platforms. Allfast definitely fits the criteria – it is a well-run, high margin, strong cash flow business with a track record of revenue growth and even greater growth potential.”
TriMas has a series of manufacturing businesses operating across a range of industries, supplying engineered and applied products for Packaging, Energy, Aerospace, and Engineered Components, as well as two other operating segments, Cequent APEA and Cequent Americas. It has approximately 6,000 employees at over 60 locations in 19 countries.
Last year, TriMas acquired Mac Fasteners, manufacturers of stainless steel aerospace fasteners used by OEMs, aftermarket repair companies, and commercial and military aircraft producers, including Airbus, BAE Systems, Bombardier, Cessna, Embraer, Gulfstream, Honeywell Aerospace, Israel Aerospace Industries, Lockheed Martin, and Raytheon.
Allfast, too, will be part of the Aerospace segment once the acquisition closes, as expected in October 2014. Directors of both companies already approved the transaction.
According to the buyer, the purchase is a strategic move in line with its objective to grow its higher-margin business platforms, and also will strengthen the TriMas aerospace business. The combined product sets of Monogram Aerospace Fasteners, Mac Fasteners and Allfast will position TriMas to benefit from platform-wide supply opportunities.
TriMas also expect to achieve “synergistic cost savings,” including combined purchasing activities, commercial initiatives, product development, and sharing of better practices between businesses.
“The combination of Allfast and TriMas’ Aerospace group is a truly exciting development for our employees and customers," according to Allfast president Jim Randall, President of Allfast. “The transaction will dramatically expand the product offering of both businesses, allowing the combined company to better support customer needs in a time of unprecedented growth in the aerospace market.”
Also, TriMas reported it ceased operations at NI Industries, which manufactured cartridge cases for the defense industry and had been part of a federal facility maintenance contract.