Barnes reports Synventive financials, plans acquisitions

By Bill Bregar
Senior Staff Reporter

Published: February 22, 2013 1:40 pm ET
Updated: February 22, 2013 1:50 pm ET

Related to this story

Topics Mergers & Acquisitions

BRISTOL, CONN. — Barnes Group Inc. reported $1.23 billion in 2012 sales, and Barnes executives said $60 million in partial-year sales from hot-runner maker Synventive Molding Solutions Inc. helped fourth-quarter sales increase by 16 percent, to $327.4 million.

Barnes paid $335 million for Synventive in a deal that closed Aug. 27. Barnes' fiscal year ends Dec. 31. Barnes said Synventive generated total sales of $160 million over the full year.

"In general we're very happy with the business. Six months in, there's no buyer's remorse," said Barnes President and CEO Gregory Milzcik in a Feb. 22 conference call with financial analysts.

Barnes is traded on the New York Stock Exchange. Most of Barnes' business has been as a "build-to-print" supplier of components for aerospace and industrial markets. Buying Synventive, a global hot-runner manufacturer based in Peabody, Mass., is part of management's strategy to diversify into more intellectual-property-type businesses.

Feb. 22 was a big day for announcements, even beyond the year-end numbers. Barnes also said it is selling its North American distribution business to MSC Industrial Direct Co. Inc. for $550 million.

Executives told financial analysts they are going to use money from the sale to reduce debt and buy back shares.

But Milzcik said Barnes also wants to buy more companies. "We have a large appetite for acquisitions, especially now," he said. "For right now, we're looking at businesses for acquisition that are aligned with the Synventive-orientated platform and as well our aero and industrial platforms, to meet those criteria. So bolt-on acquisitions is how I could identify those."

Another hot-runner major, Mold-Masters Ltd., is no longer for sale. Plastics machinery maker Milacron LLC announced Feb. 12 that it was buying Mold-Masters for $968 million.

In other news, Barnes announced that Milzcik is leaving the company after seven years as president and CEO. The Bristol-based company has promoted its current chief operating officer, Patrick Dempsey, to president and CEO. Dempsey, 48, is a 12-year veteran of Barnes Group and helped develop its strategic plan. He played a key role in the acquisition of Synventive.

Milzcik, 54, will remain with Barnes through May 3. A press release said he is retiring, but he said he plans to keep working.

"I intend in the short term to work with individuals and organizations to help shape public policy for manufacturing, which I think is sorely needed," he told analysts.

Milzcik serves on the executive committee of MAPI: Manufacturers Alliance for Productivity and Innovation.


Comments

Barnes reports Synventive financials, plans acquisitions

By Bill Bregar
Senior Staff Reporter

Published: February 22, 2013 1:40 pm ET
Updated: February 22, 2013 1:50 pm ET

Post Your Comments


Back to story


More stories

Image

UK recycler Eco Plastics sold to German investment group

December 12, 2014 11:19 am ET

Recycler Eco Plastics has been bought by Aurelius AG, a Grünwald, Germany-headquartered investment firm, for an undisclosed sum.    More

Image

Resin distributor Biesterfeld Plastic buys out partner in Biesterfeld Nordic

December 11, 2014 12:21 pm ET

Hamburg, Germany-based Biesterfeld Plastic GmbH, a distributor for the European plastic and rubber industry, announced that it has bought the shares...    More

Image

End of era for DuPont: Chemical company to sell Neoprene unit

December 10, 2014 11:27 am ET

UPDATED — DuPont Performance Polymers has signed a definitive agreement to sell its Neoprene polychloroprene business to Denka Performance...    More

Image

Compounder RTP buys assets of Alloy Polymers

December 10, 2014 6:23 pm ET

UPDATED — Engineering resins compounder RTP Co. has acquired most of the assets of Alloy Polymers, a toll compounder based in Richmond, Va.    More

Image

Barington nominates three to Omnova's board, including Gingo

December 9, 2014 9:07 am ET

Activist investor Barington Capital Group LP is continuing to pressure plastic materials and products firm Omnova Solutions Inc. by nominating three d...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events