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A group of investment bankers has offered US$3.7 billion (euro 4.9 billion) for electrical distributor Rexel SA. The offer values Rexel at 15 times its 2003 operating profit, and at 6.7 times EBITDA based on 2004 estimates. Parent company Pinault-Printemps-Redoute SA has been shopping the business unit since last year. U.S. private-equity firm Clayton, Dubilier & Rice, Inc. will lead, in partnership with Eurazeo and Merrill Lynch Global Private Equity, the acquisition of approximately 73.5 percent of Rexel SA. CD& R is a former owner of WESCO Distribution and was in talks last year to buy Hagemeyer.
Ryerson Tull, Inc., Chicago, IL, has agreed to purchase Integris Metals, Inc., a joint venture between Alcoa Inc. and BHP Billiton. Integris is one of North America's largest metals service centers, with a strong position in aluminum and stainless steel. Integris had 2003 revenues of $1.5 billion; Ryerson Tull $2.2 billion. Ryerson will purchase all of the equity interest in Integris for $410 million plus assumption of Integris' debt, which was approximately $250 million as of Oct. 1, 2004. The deal enables Alcoa and BHP Billiton to exit from a non-strategic business.
Dana Corporation, Toledo, OH, has sold its automotive aftermarket businesses to Affinia Group Inc., an affiliate of The Cypress Group, for approximately $1 billion, including roughly $950 million in cash and a seller's note with a face value of $74.5 million. The sale encompassed 52 facilities employing approximately 13,000 people worldwide. Combined annual sales for these operations totaled approximately $2 billion in 2003. The transaction also involved several premier replacement product brands and a variety of under-vehicle components. The transaction did not include Dana's distribution and marketing operations for its engine products, such as piston rings, gaskets, and engine bearings, which the company has retained as part of its Automotive Systems Group.
E.S. Dygert Company, Minneapolis, MN, and R.T. Enterprises, Inc., Skokie, Ill., have signed a merger agreement to form one of the largest independent distributors of sealing products in North America. The new company will operate as RT/Dygert International in a deal that could expand its client base and increase revenue to $20 million combined, according to a company announcement. R.T. Enterprises is also a master wholesaler of select sealing products. See article on p. 4 of this section.
Parker Hannifin, Cleveland, OH, has acquired Advanced Products Company, a privately held manufacturer of metallic and polymer spring energized seals, in a cash for stock transaction. Advanced Products will be integrated with Parker's Seal Group, which provides sealing materials to a broad range of motion and control markets worldwide. With operations in North Haven, CT, and Boom, Belgium, Advanced Products employs 150 people worldwide and has annual sales of approximately $20 million. The company provides sealing solutions for a variety of applications including gas turbines, oil and gas exploration equipment, aerospace and submarine vehicles, diesel engines and turbocharger systems.
Sandvik Hard Materials has agreed to acquire Technical Tooling, Inc (TTI), Minneapolis, MN, from Federal Signal Corporation, Oak Brook, IL. TTI is a manufacturer of precision tooling for beverage cans, with annual sales of $7 million. TTI will be integrated with Sandvik Hard Materials, a product area within the Sandvik Tooling business area. The businesses and markets are unrelated to Federal Signal's other tooling businesses.
Airgas, Inc., Radnor, PA, has acquired the assets and operations of Watt Welding Supply, Inc., an industrial gas and welding supply distributor with three locations south of Portland, OR, and DC Welding,