Barnes Announces Sale of Associated Spring™ and Hänggi™ Businesses as Part of Continued Portfolio Optimization and Long-term Profitable Growth Strategy
11 Enero 2024 - 5:00AM
Business Wire
Enables Industrial Segment Simplification, Strengthens Balance
Sheet, and Accelerates Debt Reduction
Barnes Group Inc. (NYSE: B), a global provider of highly
engineered products, differentiated industrial technologies, and
innovative solutions, today announced that it has entered into a
definitive agreement to sell its Associated Spring™ and Hänggi™
businesses to One Equity Partners. The transaction is valued at
$175 million, inclusive of a $15 million seller promissory note due
in 24 months. Expected net cash proceeds of $150 million will be
used to reduce debt incurred from the strategic acquisition of MB
Aerospace in August 2023. Barnes remains committed to achieving a
Net Debt to EBITDA ratio, as defined in its credit agreements, of
3.0x or lower by the end of 2024 and reaffirms its long-term
leverage goal of 2.5x by 2025.
Thomas J. Hook, President and Chief Executive Officer of Barnes
said, “Over the past year, we have been executing a comprehensive
business transformation strategy based on three key pillars —
Execute Core Business; Scale Aerospace; and Integrate, Consolidate
& Rationalize Industrial — to generate improved growth,
profitability, and cash flow at Barnes. Informed by a comprehensive
strategic review of our business by independent advisors, we have
continuously shared progress updates on our journey. Today’s
announced divestiture demonstrates a leap forward in rationalizing
our Industrial business and rebalancing our portfolio toward our
industry-leading Aerospace business.”
“Additionally, this transaction allows us to pay down debt,
enabling lower interest expense and meaningful tax benefits.
Associated Spring™ and Hänggi™ are solid businesses with a long
heritage and blue-chip customer base. We are confident that One
Equity will bring the dedicated focus and necessary resources to
grow this business,” added Hook.
Associated Spring™ and Hänggi™ are leaders and innovators in
engineered spring and precision metal component manufacturing,
progressive stamping, micro-stamping, and fine blanking. The brands
are part of Barnes’ Motion Control Solutions strategic business
unit within the Industrial Segment and serve automotive, general
industrial, and other markets. Combined, the businesses had
approximately $200 million in revenues over the last twelve months
with over 800 employees worldwide and manufacturing operations in
the United States, Mexico, Brazil, Switzerland, and Singapore.
“We are thrilled to partner with Associated Spring™ and
Hänggi™’s strong leadership team and talented employees. One Equity
has extensive experience in the diversified industrials space and
in acquiring high-performing businesses through carveout
transactions. We look forward to working with the team to expand
this platform through organic growth initiatives and
transformational acquisitions, a hallmark of our strategy,” said
Ante Kusurin, Managing Director of One Equity Partners.
Hook concluded, “The combination of our recent MB Aerospace
acquisition and this divestiture dramatically shifts Barnes’
portfolio toward markets with higher growth and margin
opportunities. Following the close, our Aerospace Segment will
account for a majority of our consolidated revenues and an even
larger percentage of our earnings. Further, our exposure to
automotive will be materially lower. While we still have work to do
in executing our strategic transformation, we remain committed to
reshaping and positioning Barnes for success by executing on our
three strategic pillars to deliver value to shareholders.”
The transaction is expected to close early 2024 subject to
regulatory and other customary closing conditions. Barnes
leadership will provide additional details on the company’s Q4 and
Full Year 2023 earnings call on February 16, 2024.
BofA Securities served as financial advisor and Foley &
Lardner LLP served as legal counsel to Barnes.
About Barnes
Barnes Group Inc. (NYSE: B) leverages world-class manufacturing
capabilities and market-leading engineering to develop advanced
processes, automation solutions, and applied technologies for
industries ranging from aerospace and medical & personal care
to mobility and packaging. With a celebrated legacy of pioneering
excellence, Barnes delivers exceptional value to customers through
advanced manufacturing capabilities and cutting-edge industrial
technologies. Barnes Aerospace specializes in the production and
servicing of intricate fabricated and precision-machined components
for both commercial and military turbine engines, nacelles, and
airframes. Barnes Industrial excels in advancing the processing,
control, and sustainability of engineered plastics and delivering
innovative, custom-tailored solutions for industrial automation and
metal forming applications. Established in 1857 and headquartered
in Bristol, Connecticut, USA, the Company has manufacturing and
support operations around the globe. For more information, visit
please visit www.onebarnes.com.
About One Equity Partners
One Equity Partners (“OEP”) is a middle market private equity
firm focused on the industrial, healthcare, and technology sectors
in North America and Europe. The firm seeks to build market-leading
companies by identifying and executing transformative business
combinations. OEP is a trusted partner with a differentiated
investment process, a broad and senior team, and an established
track record generating long-term value for its partners. Since
2001, the firm has completed more than 300 transactions worldwide.
OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has
offices in New York, Chicago, Frankfurt, and Amsterdam. For more
information, please visit www.oneequity.com.
Forward-Looking Statements
This press release contains forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements address our expected future operating
and financial performance and financial condition, and often
contain words such as "anticipate," "believe," "expect," "plan,"
"strategy," "estimate," "project," and similar terms. These
forward-looking statements do not constitute guarantees of future
performance and are subject to a variety of risks and uncertainties
that may cause actual results to differ materially from those
expressed in the forward-looking statements. These risks include
our ability to close the divestiture of Associated Spring™ and
Hänggi™ within the anticipated time period, if at all;
uncertainties relating to conditions in financial markets; currency
fluctuations and foreign currency exposure; future financial
performance of the industries or customers that we serve; risks
associated with international sales and operations; the ability to
maintain adequate liquidity and financing sources; and general
economic conditions affecting the industries we serve. A detailed
discussion of these and other factors that may affect our future
results is contained in Barnes Group Inc.’s filings with the U.S.
Securities and Exchange Commission, including its most recent
reports on Form 10-K, 10-Q, and 8-K. The Company assumes no
obligation to update our forward-looking statements.
Category: General
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version on businesswire.com: https://www.businesswire.com/news/home/20240111280733/en/
Investors: Barnes Group Inc. William Pitts Vice
President, Investor Relations 860.583.7070 ir@onebarnes.com
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