Zug, Switzerland-based Partners Group, a global private markets investment manager, has signed an agreement to acquire a controlling stake in Dynacast International, Charlotte, N.C., 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, complex metal components. The company uses proprietary precision diecasting and metal injection molding (MIM) technologies to produce custom, high volume components with intricate shapes and tight tolerances. Dynacast has 23 manufacturing plants in 16 countries worldwide, which 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, Dynacast 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 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.
“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,” said Simon Newman, CEO, Dynacast.
Joel Schwartz, Managing Director for Partners Group in New York, added, “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.”
The transaction has fully committed financing from JPMorgan Chase Bank, N.A., Barclays and Macquarie Capital and is subject to regulatory approvals and customary closing conditions. J.P. Morgan Securities LLC, Barclays, Macquarie Capital, Goodwin Procter LLP and KPMG LLP are advising Partners Group on the transaction.
Morgan Stanley and Co. LLC served as exclusive financial advisor to Dynacast while Hunton & Williams LLP and Davis Polk & Wardwell LLP served as legal counsel to Dynacast with respect to the transaction.