One Equity Partners Completes Acquisition of Associated Spring

Rhea-AI Summary

One Equity Partners (OEP) completes the acquisition of Associated Spring from Barnes Group Inc., a leading manufacturer of custom parts for industrial, medical, and automotive applications. The Company has a global footprint with over 800 employees and plans for organic growth and add-on acquisitions. The aerospace and medical markets show promising growth trends, with OEP aiming to establish Associated Spring as a market leader.

Market Research Analyst

The acquisition of Associated Spring by One Equity Partners (OEP) from Barnes Group Inc. represents a strategic move within the industrial sector, specifically in the manufacturing of engineered springs and precision components. The transaction showcases OEP's expertise in executing corporate carve-outs, which is a significant aspect of private equity strategies that can lead to value creation.

From a market perspective, the engineered springs and stampings sector is substantial, with the aerospace and medical markets alone estimated at $28 billion and $41 billion respectively. The projected compound annual growth rate (CAGR) of approximately 9% from 2022 to 2027 indicates robust sector expansion, presenting potential opportunities for Associated Spring under OEP's ownership.

The focus on organic growth and strategic add-on acquisitions could position Associated Spring favorably within the industrial supply chain. Furthermore, the emphasis on advanced technical capabilities and the company's scalable, global operating footprint could enhance its competitive edge in the marketplace.

Financial Analyst

The completion of the acquisition of Associated Spring has implications for both OEP and Barnes Group Inc.'s financials. For OEP, the acquisition expands its portfolio in a sector with strong growth prospects. The investment in a company with over 800 employees and a global presence could lead to significant revenue streams if managed effectively.

Barnes Group Inc. shareholders will be interested in how the divestiture affects the company's focus and capital allocation. The sale could indicate a strategic shift or a decision to concentrate resources on more profitable or core areas of the business.

Investors should monitor the post-acquisition integration process, as the success of such transactions is often determined by the acquirer's ability to realize synergies and drive operational efficiencies. The management's track record and the strategic growth initiatives mentioned will be critical in assessing the potential return on investment.

Industrial Sector Analyst

The industrial sector is undergoing significant changes, with companies like Associated Spring at the forefront of supplying critical components for aerospace and medical applications. The acquisition by OEP could signal an increased focus on specialization within the sector.

The mention of a scalable global operating footprint is essential, as it suggests that Associated Spring is not only a significant player domestically but also has the capacity to meet demands in diverse geographic markets. This global reach is particularly advantageous in the industrial sector, where supply chains are increasingly international.

As the aerospace and medical industries continue to grow, suppliers that can provide high precision and engineered components will be in greater demand. The strategic direction highlighted by the CEO, focusing on advanced technical capabilities, could enable Associated Spring to capitalize on this demand and solidify its position as a market leader.

Transaction Highlights OEP’s Carve-out Capability in Industrials

NEW YORK--(BUSINESS WIRE)-- One Equity Partners (“OEP”), a middle market private equity firm, today announced it has completed the acquisition of engineered spring and precision components manufacturer Associated Spring (or “the Company”) from global industrial technology and aerospace manufacturer Barnes Group Inc. (NYSE: B).

Founded in Bristol, Connecticut, Associated Spring is a leading manufacturer of custom parts, including engineered springs and high precision metal components, as well as stamped manufactured solutions and assemblies for industrial, medical, and automotive applications. The Company has a scalable, global operating footprint with six production facilities across the Americas, Europe, and Asia and over 800 employees worldwide.

“This acquisition is another example of OEP’s ability to execute corporate carve-outs of attractive and specialized industrial assets from major industry players,” said Ante Kusurin, Partner, One Equity Partners. “We believe Associated Spring is well-positioned in the global springs and stampings production sector, and is primed for growth as a major industrial supplier to growing and attractive segments including the aerospace and medical end markets.”

The aerospace engineered springs and stampings market is estimated to be approximately $28 billion, and the medical engineered springs and stampings market is estimated to be around $41 billion. Both markets are expected to grow at a ~9% CAGR from 2022 to 2027. OEP believes that these tailwinds will help fuel organic growth alongside plans to grow through transformational add-on acquisitions.

“The Company’s management team and I are eager to work with One Equity Partners to guide Associated Spring into its next chapter and build the Company into a stand-alone, market-leading player with advanced technical capabilities,” said Jack Rababeh, Chief Executive Officer of Associated Spring. “We believe OEP’s growth strategy, including organic expansion and partnership initiatives, will lead to deeper inroads within the expanding market segments we serve and drive overall growth for this business.”

About One Equity Partners

One Equity Partners (“OEP”) is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm seeks to build market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 300 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, please visit www.oneequity.com.

About Associated Spring

With origins dating to 1857, Associated Spring has been a global leader in the engineered spring and precision metal component manufacturing arena with engineering, design and manufacturing facilities around the world. We serve as a one-stop, full-service shop for precision-engineered solutions. Utilizing mechanical springs, wire forms, washers, reed and flapper valves, precision stampings and assemblies, our products are built to meet and exceed our customers’ requirements quickly and efficiently. Applications for our precision solutions serve the transportation, aerospace and defense, construction, energy, telecommunications, and industrial markets. Learn more at www.asbg.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240404053773/en/

Media

Thomas Zadvydas

Stanton

646-502-3538

Tzadvydas@stantonprm.com

Source: One Equity Partners

What is the ticker symbol for Barnes Group Inc.?

The ticker symbol for Barnes Group Inc. is 'B'.

Where is Associated Spring headquartered?

Associated Spring is headquartered in Bristol, Connecticut.

How many production facilities does Associated Spring have globally?

Associated Spring has six production facilities across the Americas, Europe, and Asia.

What are the estimated market sizes for aerospace and medical engineered springs and stampings?

The aerospace market is estimated to be $28 billion, and the medical market is estimated to be around $41 billion.

What growth rate is expected for the aerospace and medical markets from 2022 to 2027?

Both markets are expected to grow at a ~9% CAGR from 2022 to 2027.

What are OEP's growth plans for Associated Spring?

OEP aims to fuel organic growth and pursue transformational add-on acquisitions for Associated Spring.