WOODWARD PARK PARTNERS ADVISES TRIMAS IN ITS SALE OF ARROW ENGINE TO IES INFRASTRUCTURE SOLUTIONS

Rhea-AI Summary

TriMas (NASDAQ: TRS) has sold its subsidiary Arrow Engine Company to IES Infrastructure Solutions , a division of IES Holdings, Inc. (NASDAQ: IESC). Arrow Engine, based in Tulsa, Oklahoma, specializes in natural gas-powered engines, compressors, and replacement parts for oil and gas production and industrial markets.

Arrow Engine's products are primarily distributed throughout the United States and Canada through a worldwide distribution network. The company manufactures its own engine line and provides spare parts for various industrial engines. The acquisition aligns with IES Holdings' portfolio, which includes electrical and technology systems installation and infrastructure services across various end markets including data centers, residential housing, and commercial facilities.

Positive

• Strategic divestment allowing TriMas to focus on core business segments (Packaging, Aerospace, and Specialty Products)
• Reduces exposure to cyclical oil and gas industry

Negative

• Reduction in revenue stream and market diversification
• Decreased presence in the industrial energy sector

Insights

Investment Banking Analyst

The divestiture of Arrow Engine marks a significant strategic realignment for TriMas , reflecting a deliberate shift away from the cyclical oil and gas equipment sector. This transaction carries several key implications:

Strategic Benefits:

• Portfolio Optimization: The sale allows TriMas to streamline its business model and focus resources on its core segments - packaging, aerospace and specialty products - which typically command higher margins and more stable growth trajectories.
• Risk Reduction: By divesting Arrow Engine, TriMas reduces its exposure to the volatile oil and gas sector, potentially leading to more predictable revenue streams and improved valuation multiples.
• Capital Reallocation: The proceeds from this sale could be reinvested in higher-growth opportunities within TriMas' core segments or used for debt reduction.

Market Context: This transaction aligns with broader industry trends where industrial conglomerates are streamlining their portfolios to focus on core competencies. For IES Infrastructure Solutions, Arrow Engine's natural gas-powered equipment complements their existing electro-mechanical solutions portfolio, particularly in industrial and data center applications.

While specific transaction terms weren't disclosed, this divestiture should enhance TriMas' operational focus and potentially lead to improved margins and more consistent earnings growth. The move signals management's commitment to optimizing the company's business mix and creating shareholder value through strategic portfolio management.

BLOOMFIELD HILLS, Mich., Feb. 7, 2025 /PRNewswire/ -- Woodward Park Partners is pleased to announce that IES Infrastructure Solutions LLC, a division of IES Holdings, Inc. (NASDAQ: IESC) has acquired Arrow Engine Company, a subsidiary of TriMas Corporation (NASDAQ: TRS). Arrow Engine, based in Tulsa, Oklahoma, is a global provider of natural gas-powered engines, compressors and replacement parts for use in oil and natural gas production and other industrial markets.

Arrow Engine Company (www.arrowengine.com) Arrow Engine is a provider of natural gas-powered engines, typically used in remote applications such as oil field pump jacks, and compressors and replacement parts, which are engineered for use in oil and natural gas production and other industrial markets. Arrow Engine distributes its products through a worldwide distribution network, primarily focused on the United States and Canada. Arrow Engine manufactures its own engine line and also offers a wide variety of spare parts for various industrial engines not manufactured by Arrow Engine.

IES Holdings (NASDAQ: IESC) (www.ies-co.com), IES designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. IES has more than 9,000 employees and serves clients in the United States. IES's Infrastructure Solutions segment is a provider of electro-mechanical solutions for industrial operations, including apparatus repair and custom-engineered products, such as generator enclosures and bus duct, used in data centers and other industrial applications.

TriMas (NASDAQ: TRS) (www.trimas.com), TriMas manufactures a diverse set of products primarily for the consumer products, aerospace and industrial markets through its TriMas Packaging, TriMas Aerospace and Specialty Products groups. TriMas has approximately 3,500 dedicated employees in 13 countries that provide customers with a wide range of innovative and quality product solutions through market-leading businesses.

ABOUT WOODWARD PARK PARTNERS

Woodward Park Partners (www.woodwardparkpartners.com) is a middle-market focused investment banking firm. The firm specializes in providing high-touch advisory services with unparalleled senior professional involvement to financial sponsors, private business owners and publicly-traded companies. The firm's expertise covers a wide spectrum of transaction types, including private company sales, divestitures, mergers & acquisitions and other financial advisory engagements.

For media inquiries, please contact info@woodwardparkpartners.com or (248) 717-0097

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SOURCE Woodward Park Partners

FAQ

What impact will the Arrow Engine sale have on TriMas (TRS) business operations?

The sale will reduce TriMas's exposure to the oil and gas industry, allowing the company to focus on its core segments: TriMas Packaging, TriMas Aerospace, and Specialty Products.

How will the Arrow Engine divestment affect TRS market positioning?

The divestment will decrease TriMas's presence in the industrial energy sector while potentially strengthening its focus on consumer products, aerospace, and industrial markets.

What is the geographical impact of TRS selling Arrow Engine?

The sale will primarily affect TriMas's market presence in the United States and Canada, where Arrow Engine's distribution network was mainly focused.

What markets will TRS focus on after the Arrow Engine sale?

Following the sale, TriMas will focus on its three main market segments: consumer products, aerospace, and industrial markets through its TriMas Packaging, TriMas Aerospace, and Specialty Products groups.