Partners Group, the global private markets investment manager, has signed an agreement to acquire a controlling stake in Dynacast International on behalf of its clients. The transaction has an overall enterprise value of $1.1 billion and is expected to close in February 2015.
Founded nearly 80 years ago, Dynacast International is a global manufacturer of small, highly complex metal components using its proprietary precision die-casting and Metal Injection Moulding (MIM) technologies to produce customised, high-volume components with complex shapes and tight tolerances.
Dynacast, which was profiled in the December 2014 issue of Powder Injection Moulding International magazine, is headquartered in Charlotte, North Carolina, USA, and has 23 manufacturing plants in 16 countries worldwide. These serve a diverse client base including blue-chip customers across the automotive, telecommunications, computing, consumer electronics, and healthcare industries.
Dynacast was acquired in 2011 by a consortium of investors including Izurium Capital Management, W Capital Partners, Laurel Crown Partners, Kenner & Company, Babson Capital Management, Macquarie Capital and certain members of management. Since its acquisition in 2011, the company has experienced considerable growth and has expanded its footprint and penetrated new markets with its broad range of product offerings while strengthening its product portfolio with its recent acquisition of leading US MIM parts producer Kinetics Climax Inc.
Partners Group is acquiring Dynacast from exiting financial investors and is joined in the acquisition by Kenner & Company, an existing shareholder, and the company’s management team, which will both roll over significant equity stakes into the new transaction. Following the close of the acquisition, Partners Group and Kenner & Company will work closely with Dynacast’s management team to support the company in the next phase of its global growth plans.
Simon Newman, Chief Executive Officer of Dynacast, stated, “Dynacast has a long and rich history of continuously refining our proprietary manufacturing technologies, in-house tooling expertise and innovative design processes to manufacture highly complex metal components in a fast, repeatable and precise manner to provide greater value to our customers. With the investment led by Partners Group, we have the strategic support and capital backing to enter into the next phase of growth for our company.”
Joel Schwartz, Managing Director at Partners Group in New York, stated, “We are really looking forward to working with Simon and the rest of Dynacast’s management team in this next stage of the company’s development. Dynacast already has a truly differentiated position as a global supplier in the precision metal components marketplace and we see exciting potential for further expansion. We believe our global platform and deep network of industry relationships make us the ideal partner to back management’s vision for the business going forward, particularly through our assistance with acquisitions and with the deepening of the company’s integrated, worldwide approach.”
- Download PIM International’s profile on Dynacast international, free of charge, in our December 2014 issue.