Form Technologies Acquired by Ares Management
Form Technologies, a global leader in precision-engineered components, announced its acquisition by Ares Management funds. The transaction includes approximately $304 million in new equity capital, consisting of $154 million in common equity from investors including Ares, D. E. Shaw group and Onex Credit, plus $150 million in preferred equity from D. E. Shaw group and Ripple Industries.
The company operates 32 facilities across 22 countries, specializing in die casting, investment casting, and metal injection molding. Form Technologies serves nearly 2,000 customers across automotive, aerospace, healthcare, and enterprise technology sectors. The new capital will support investment in operational capabilities and accelerate commercial strategy, following a platform-wide strategic repositioning over the past two years.
Form Technologies, leader globale nei componenti ingegnerizzati di precisione, ha annunciato la sua acquisizione da parte di fondi di Ares Management. La transazione include circa 304 milioni di dollari in nuovo capitale azionario, che consistono in 154 milioni di dollari in capitale comune da investitori, tra cui Ares, D. E. Shaw group e Onex Credit, più 150 milioni di dollari in capitale di rischio da D. E. Shaw group e Ripple Industries.
L'azienda opera in 32 strutture in 22 paesi, specializzandosi nella pressofusione, nella fusione in sabbia e nello stampaggio a iniezione di metallo. Form Technologies serve quasi 2.000 clienti nei settori automobilistico, aerospaziale, sanitario e della tecnologia per le imprese. Il nuovo capitale supporterà gli investimenti nelle capacità operative e accelererà la strategia commerciale, a seguito di un riposizionamento strategico a livello di piattaforma negli ultimi due anni.
Form Technologies, líder global en componentes de precisión, anunció su adquisición por fondos de Ares Management. La transacción incluye aproximadamente $304 millones en nuevo capital accionario, que consiste en $154 millones en capital común de inversores como Ares, el grupo D. E. Shaw y Onex Credit, más $150 millones en capital preferente del grupo D. E. Shaw y Ripple Industries.
La empresa opera 32 instalaciones en 22 países, especializándose en moldeo a presión, moldeo por inversión y moldeo por inyección de metal. Form Technologies atiende a casi 2,000 clientes en los sectores automotriz, aeroespacial, sanitario y de tecnología empresarial. El nuevo capital apoyará la inversión en capacidades operativas y acelerará la estrategia comercial, tras un reposicionamiento estratégico a nivel de plataforma en los últimos dos años.
폼 테크놀로지스, 정밀 엔지니어링 부품의 글로벌 리더, 아레스 매니지먼트 펀드에 인수되었다고 발표했습니다. 이번 거래는 약 3억 4천만 달러의 새로운 주식 자본을 포함하며, Ares, D. E. Shaw 그룹 및 Onex Credit을 포함한 투자자들로부터 1억 5천 4백만 달러의 보통 주식과 D. E. Shaw 그룹 및 Ripple Industries로부터 1억 5천만 달러의 우선 주식으로 구성됩니다.
이 회사는 22개국에 걸쳐 32개 시설를 운영하며 주조, 투자 주조, 금속 사출 성형을 전문으로 합니다. 폼 테크놀로지스는 자동차, 항공우주, 헬스케어 및 기업 기술 분야에서 거의 2,000명의 고객에게 서비스를 제공합니다. 신규 자본은 운영 역량 투자 및 상업 전략 가속화를 지원할 것이며, 지난 2년 동안의 플랫폼 전체 전략적 재편성에 이어 진행됩니다.
Form Technologies, leader mondial en composants de précision, a annoncé son acquisition par des fonds d'Ares Management. La transaction comprend environ 304 millions de dollars en nouveau capital, dont 154 millions de dollars en actions ordinaires de la part d'investisseurs tels qu'Ares, le groupe D. E. Shaw et Onex Credit, ainsi que 150 millions de dollars en actions privilégiées du groupe D. E. Shaw et de Ripple Industries.
L'entreprise exploite 32 installations dans 22 pays, se spécialisant dans le moulage sous pression, le moulage de précision et le moulage par injection de métal. Form Technologies sert près de 2.000 clients dans les secteurs de l'automobile, de l'aérospatial, de la santé et de la technologie des entreprises. Le nouveau capital soutiendra les investissements dans les capacités opérationnelles et accelerera la stratégie commerciale, à la suite d'un repositionnement stratégique à l'échelle de la plateforme au cours des deux dernières années.
Form Technologies, ein globaler Marktführer in der präzisionsgefertigten Komponenten, hat seine Akquisition durch Ares Management-Fonds bekannt gegeben. Die Transaktion umfasst etwa 304 Millionen US-Dollar an neuem Eigenkapital, darunter 154 Millionen US-Dollar an Stammaktien von Anlegern wie Ares, der D. E. Shaw-Gruppe und Onex Credit sowie 150 Millionen US-Dollar an Vorzugsaktien von der D. E. Shaw-Gruppe und Ripple Industries.
Das Unternehmen betreibt 32 Einrichtungen in 22 Ländern und spezialisiert sich auf Druckguss, Feinguss und Metall-Spritzguss. Form Technologies bedient nahezu 2.000 Kunden in den Sektoren Automobil, Luft- und Raumfahrt, Gesundheitswesen und Unternehmens technologie. Das neue Kapital wird Investitionen in die operativen Fähigkeiten unterstützen und die kommerzielle Strategie beschleunigen, nach einer strategischen Neupositionierung auf der gesamten Plattform in den letzten zwei Jahren.
- Secured $304 million in new equity capital for growth and deleveraging
- Substantial balance sheet deleveraging achieved through the transaction
- Strong market presence with 32 facilities across 22 countries
- Diverse customer base of 2,000 organizations across multiple sectors
- Strategic repositioning completed, strengthening market position
- None.
Insights
Ares Management's strategic acquisition of Form Technologies marks a compelling expansion in the industrial manufacturing sector, bringing significant implications for both entities. The
The transaction's structure is particularly noteworthy for three key reasons:
- The deleveraging component strengthens Form Technologies' balance sheet, potentially improving its credit profile and reducing interest expenses
- The involvement of multiple sophisticated investors suggests strong confidence in the company's growth trajectory
- The mix of common and preferred equity provides financial flexibility while maintaining strategic control
Form Technologies' market position is robust, with its 32 facilities across 22 countries enabling efficient global production and distribution. The company's focus on precision-engineered components serves high-growth sectors including automotive (particularly relevant for EV transition), aerospace (amid recovery and modernization trends) and healthcare (driven by aging demographics and technological advancement).
For Ares Management (ARES), this acquisition aligns with their strategy of investing in market-leading industrial companies with strong operational capabilities and growth potential. The transaction should contribute positively to Ares' assets under management and potentially generate attractive returns through both operational improvements and strategic growth initiatives.
Form Technologies' manufacturing capabilities represent a strategic advantage in the precision engineering sector, particularly through its integrated approach to three critical processes: die casting, investment casting and metal injection molding. This diversification is important as different industries require varying levels of precision and cost-effectiveness.
The company's recent operational enhancements are particularly timely given current industry trends:
- Increasing demand for high-precision components in electric vehicles and advanced aerospace applications
- Growing need for complex medical device components amid healthcare technology advancement
- Rising requirements for sophisticated enterprise technology hardware components
The expansion of their customer base to nearly 2,000 organizations indicates strong market penetration and validates their solutions-based approach. Their global manufacturing footprint provides significant competitive advantages:
- Ability to serve customers locally, reducing supply chain complexities
- Diversification of manufacturing risks across regions
- Capacity to leverage regional cost advantages while maintaining quality standards
With Ares' backing and the new capital injection, Form Technologies is well-positioned to further enhance its operational capabilities and potentially capture additional market share in high-growth segments.
With a robust global footprint of 32 facilities across 22 countries, Form Technologies has built strong commercial momentum through its ability to offer diversified casting services at scale, with key competencies in die casting, investment casting and metal injection molding. In recent years, the Company has invested significantly in its proprietary processes and engineering capabilities to support product design and manufacturing with a higher level of precision for its customers. Form Technologies has also implemented important enhancements to its commercial organization in that time and has accelerated the success of new customer programs, increasing the Company's customer count to nearly 2,000 organizations across key end markets, including automotive, aerospace, healthcare and enterprise technology.
"Over the past two years, we have undertaken a platform-wide strategic repositioning that has solidified Form Technologies as a global leader in precision-engineered parts," said David Angell, Chief Executive Officer of Form Technologies. "I am very proud of the work our team has done to deliver on our operational objectives while continuing to meet our customers' needs. We are excited to move forward with additional strategic support from Ares as we seek to build on our commercial momentum, expand our presence in key regions and drive long-term growth."
"Since our initial investment in 2021, we have observed the acceleration of Form Technologies' commercial success through its differentiated solutions-based offering and engineering excellence," said Aaron Rosen, Partner and Co-Head of Opportunistic Credit at Ares Management. "We believe that under David's leadership, Form Technologies is well-positioned to address the growing needs of its diversified customer base across key regions and sectors. We look forward to the exciting opportunities ahead as we support the team's goals for driving revenue growth and value creation."
Jefferies LLC served as financial advisor and Kirkland & Ellis LLP served as legal counsel to the Company. Evercore served as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Ares.
About Form Technologies
Form Technologies is a leading global producer of precision-engineered components with complex geometries and tight tolerances. Utilizing proprietary processes and engineering expertise, the company manufactures over five billion high-precision components annually, serving diverse end markets worldwide. With 32 manufacturing facilities across 22 countries, and a global team of over 7,500 employees, Form Technologies provides customized solutions to meet its customers' most demanding challenges.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of September 30, 2024, Ares Management Corporation's global platform had approximately
Forward-Looking Statements
The Company has included statements in this press release that constitute "forward-looking statements." As a general matter, forward looking statements are those focused on future or anticipated events or trends, expectations and beliefs including, among other things, the Company's expectations with respect to its business, strategic plans, investments, including investments in its operational capabilities, and its financial condition. Such statements are intended to be identified by using words such as "believe," "expect," "intend," "estimate," "anticipate," "will," "plan" and similar expressions in connection with any discussion of future operating or financial performance. Not all forward-looking statements in this press release may contain one or more of these identifying terms. Several factors could cause actual results to differ materially from those contained in any forward-looking statement, such as factors related to our ability to execute our strategic plans, to realize benefits from our investments in our operational capabilities and to service or refinance our indebtedness. Any forward-looking statements are and will be based upon the Company's then-current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements, and the Company undertakes no obligation to update them. Readers are cautioned not to rely on such forward-looking statements.
Contacts
Form Technologies
marketingformtechnologies@formtechnologies.com
Ares Management
Jacob Silber, +1-212-301-0376
Brennan O'Toole, +1-212-301-0391
media@aresmgmt.com
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SOURCE Form Technologies, Inc.
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