6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Barnes Group Inc., Bristol, CT, has acquired DE-STA-CO Manufacturing, Troy, MI, a manufacturer of reed valves and shock discs, for $16.9 million in cash. DE-STA-CO was formerly an operating division of Dover Resources Inc., a subsidiary of Dover Corporation.
The acquisition adds approximately $28 million in annualized sales to Barnes Group Inc.'s Associated Spring unit. DE-STA-CO has a total of five manufacturing locations, three in Michigan, and one each in Thailand and the United Kingdom. Barnes Group paid $16.9 million in cash for DE-STA-CO.
"This is a great bolt-on acquistion. DE-STA-CO will lead Associated Spring's expanded presence in the growing reed valve marketplace, while increasing our international manufacturing footprint for these products, including Asia," said Edmund M. Carpenter, president and CEO. "At the same time, DE-STA-CO will bring to Associated Spring industry-leading engineering expertise and a number of proprietary manufacturing capabilities. We believe that this acquisition will be slightly accretive to our 2005 earnings."
Reed valves are custom-engineered critical components used in compressors which are, in turn, used in residential and industrial air conditioning and refrigeration applications, as well as air conditioners in automobiles. Shock discs are spring-like components used in vehicle ride control systems.
"The addition of DE-STA-CO to Associated Spring creates a leading supplier of highly engineered reed valves, and will complement our existing reed valve business in Brazil," said Richard P. McCorry, president, Associated Spring. "We will blend the strengths of both operations, including a broadened product line and deepened engineering resources, to service our global customer base from our combined manufacturing operations worldwide."
With the DE-STA-CO transaction, Barnes Group has now completed nine acquisitions in the last five years, adding approximately $370 million in sales. The company said it will continue to seek opportunities that will create sustainable, profitable growth and help build lasting value for stockholders.
Barnes Group Inc. is a diversified international manufacturer of precision metal components and assemblies and a distributor of industrial supplies, serving a wide range of markets and customers. Barnes Group consists of three businesses with 2003 sales of $891 million: Associated Spring, one of the world's largest manufacturers of precision mechanical and nitrogen gas springs and a global supplier of retaining rings, reed valves and injection-molded plastic components; Barnes Aerospace, a manufacturer and repairer of highly engineered assemblies and components for commercial and military aircraft engines, airframes, and land-based industrial gas turbines; and Barnes Distribution, an international, full-service distributor of maintenance, repair and operating supplies.