Barnes Group Inc. (NYSE:B), an international aerospace and industrial manufacturing and service provider, announced that it has entered into a definitive agreement to acquire privately held Synventive Molding Solutions, a leading designer and manufacturer of highly engineered and customized hot runner systems, components, and services, headquartered in Peabody, Massachusetts. Hot runner systems are the enabling technology for many complex injection molding applications and are standard in industries that require premium product aesthetics and performance.
Barnes Group has agreed to purchase all the capital stock of Synventive for $335 million in cash, subject to certain closing and post-closing adjustments, and is expected to finance the transaction with cash on hand and additional borrowings under an accordion feature of the Company’s existing credit agreement. The acquisition is anticipated to close in August 2012, subject to the receipt of regulatory approvals and the satisfaction of other closing conditions, including obtaining necessary third party agreements.
Synventive is one of the world’s largest hot runner systems manufacturers, serving a global customer base of more than 3,000 molders, mold makers and original equipment manufacturers across 50 countries. With estimated 2012 revenues of approximately $160 million, Synventive operates out of three manufacturing locations in the United States, Germany and China, with sales and service offices in 28 countries and 770 employees worldwide. Synventive will operate as a strategic business unit within the Barnes Group’s Industrial Segment.
“We are very excited to add Synventive to Barnes Group and about the tremendous opportunities for growth we expect this acquisition to bring to us,” said Gregory Milzcik, President and CEO of Barnes Group Inc. “The global demand for more complex, highly technical injection molding solutions is anticipated to grow substantially in the future. We are eager to add Synventive’s innovative products and services to Barnes Group’s core manufacturing capabilities and to work with them to create a stronger, more dynamic presence in the global marketplace.”
Added Milzcik, “Barnes Group takes pride in providing rewarding opportunities for all employees to grow and develop their careers with the company. We are impressed with the expertise and commitment demonstrated at Synventive and are enthusiastic about having their employees join our team and contribute to our ongoing success. We welcome the opportunity to invest in this outstanding company and to continue providing customers with the superior products and services associated with the Barnes Group and Synventive names.”
About Barnes Group Inc.
Founded in 1857, Barnes Group Inc. (NYSE:B) is an international aerospace and industrial manufacturing and service provider, serving a wide range of end markets and customers. The products and services provided by Barnes Group are used in far-reaching applications that provide transportation, communication, manufacturing and technology to the world. Barnes Group’s approximately 4,400 dedicated employees, at more than 50 locations worldwide, are committed to achieving consistent and sustainable profitable growth. For more information, visit www.BGInc.com.