Barnes Group Completes Aerospace Acquisition
BRISTOL, Connecticut, September 7, 2000 -- Barnes Group Inc. (NYSE: B) announced today that it has completed the acquisition of substantially all of the assets of Kratz-Wilde Machine Company and Apex Manufacturing Inc. from Aviation Sales Company (NYSE: AVS). Kratz-Wilde and Apex are leaders in the production of intricate aerospace components utilized in jet engines and aircraft systems, with customers that include the world's largest aircraft engine and airframe manufacturers. The purchase price of $41 million was financed through an existing credit agreement.
"This acquisition will add approximately $45 million in annual sales to our Barnes Aerospace operation, and further reinforces our position as a leader in the production of complex aerospace parts. We are also deepening our customer relationships in the fastest-growing segments of the jet engine market, such as regional jets," said Edmund M. Carpenter, president and chief executive officer of Barnes Group Inc.
"With the closing of this transaction, we have completed three strategic acquisitions in the past year, one in each of our businesses of aerospace, industrial distribution, and precision spring manufacturing. Through these acquisitions, we have expanded our annual revenues to a run rate in excess of $800 million, more than 30 percent higher than our full-year revenues in 1999," Carpenter continued. "More importantly, we have not sacrificed profitability for the sake of growth in these transactions. All of the acquired businesses will enhance our ability to create shareholder value over the long term," Carpenter concluded.
In May, 2000, Barnes Group Inc. acquired Curtis Industries, Inc., a leader in distribution of MRO supplies. Curtis, with approximately $85 million in annualized sales, was combined with Bowman Distribution to form Barnes Distribution. In addition to gaining a highly experienced leadership team for Barnes Distribution, the transaction expanded the company's product offerings to customers and provided excellent leverage in materials purchases and other vendor relationships.
Barnes Group Inc. also acquired the nitrogen gas spring business of Allegheny-Teledyne in August, 1999, which added roughly $55 million in annualized sales to Barnes Group's Associated Spring unit. The nitrogen gas spring purchase, which was immediately accretive to earnings, rounded out the portion of Associated Spring's product line targeted at the metal forming industries.
Barnes Group Inc. (www.barnesgroupinc.com) is a diversified international manufacturer of precision metal parts and distributor of industrial supplies, serving a wide range of markets and customers. Founded in 1857, Barnes Group consists of three businesses with 1999 sales of $622 million. Barnes Group employs approximately 5,000 people at more than 50 locations worldwide.
This release may contain certain forward-looking statements as defined in the Public Securities Litigation and Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements. Investors are encouraged to consider these risks and uncertainties as described within the company's periodic filings with the Securities and Exchange Commission, including the following: changes in market demand for the types of products and services produced and sold by Barnes Group Inc., changes in worldwide economic and political conditions, interest and foreign exchange rate fluctuations, regulatory changes, and an inability to achieve the benefits of the combined operations outlined above.
Contacts: Phillip J. Penn (Investors) 860-973-2126
Stephen J. McKelvey (Media) 860-973-2132