JPMorgan, BofA, Wells Finance TriMas/Allfast Acquisition
TriMas Corporation announced that it entered into an agreement to acquire Allfast Fastening Systems for approximately $360 million. Upon closure of the transaction, Allfast will become part of the company’s Aerospace segment, formerly known as the Aerospace & Defense segment.
The acquisition will be funded through an underwritten incremental $250 million senior secured term loan A and additional borrowings under the Company’s existing $575 million revolving credit facility. JPMorgan, Bank of America Merrill Lynch and Wells Fargo are acting as joint lead arrangers and bookrunners on the term loan.
The transaction, which has been approved by the board of directors of both companies, is subject to customary closing conditions and receipt of regulatory approvals. Deutsche Bank provided financial advisory services to TriMas’ Board of Directors on the acquisition and Moelis & Company acted as exclusive financial advisor to Allfast. TriMas expects to obtain all required regulatory clearances and close the transaction by the end of October 2014.
“Adding Allfast to our aerospace platform increases our leadership and growth potential in the aerospace industry,” said Dave Wathen, president and CEO of TriMas. “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.”
“The combination of Allfast and TriMas’ Aerospace group is a truly exciting development for our employees and customers, said 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. Both companies have proprietary products and processes, as well as strong application engineering and product development capabilities focused on solving customer problems. TriMas also has a similar culture of teamwork, accountability and mutual respect. I am pleased that Allfast’s long and proud legacy will enter a new chapter as part of TriMas.”
Allfast is a manufacturer of solid and blind rivets, blind bolts, temporary fasteners and installation tooling for the aerospace industry.