Add-on Acquisition • Metals/Mining

Precision Castparts Acquires RathGibson

On March 8, 2012, Precision Castparts acquired metals/mining company RathGibson from Wayzata Investment Partners and aPriori Capital Partners

Acquisition Context
  • This is Precision Castparts’ 5th transaction in the Metals/Mining sector.
  • This is Precision Castparts’ 13th transaction in the United States.
  • This is Precision Castparts’ 1st transaction in Illinois.

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M&A Deal Summary

Date March 8, 2012
Target RathGibson
Sector Metals/Mining
Buyer(s) Precision Castparts
Sellers(s) Wayzata Investment Partners
aPriori Capital Partners
Deal Type Add-on Acquisition

Target Company

RathGibson

Lincolnshire, Illinois, United States
RathGibson, Inc. is a manufacturer of high–performance welded austenitic stainless steel and specialty alloy tubing. RathGibson tubing is chosen where strength, durability and resistance to heat and corrosion are crucial. Representative end uses occur in industries such as oil and gas production and exploration, power generation, food and dairy, pharmaceuticals, biotechnology, petrochemicals and semiconductors.
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Buyer Overview 1

Buyer

Precision Castparts

Portland, Oregon, United States

Category Company
Founded 1949
Sector Manufacturing
Employees29,900
Revenue 10.0B USD (2015)
DESCRIPTION

Precision Castparts is a manufacturer of complex metal components and products. It serves the aerospace, power, and general industrial markets. Precision Castparts was formed in 1953 and is headquartered in Portland, Oregon.


Deal Context for Buyer #
Overall 14 of 31
Sector: Metals/Mining 5 of 9
Type: Add-on Acquisition 11 of 26
State: Illinois 1 of 1
Country: United States 13 of 28
Year: 2012 1 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-07-10 Primus International

Bellevue, Washington, United States

Primus International, Inc. is a Tier II global supplier of highly engineered metallic and composite parts, kits and assemblies to the international aerospace industry.

Buy $900M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-07 Centra Industries

Cambridge, Ontario, Canada

Centra Industries is a family-owned manufacturer of structural components and assemblies for commercial aircraft, specializing in high-speed production of geometrically complex, tight tolerance parts. Company products can be found on major platforms such as Boeing's 737, 747, 777, and 787, Bombardier's RJ and Business Jet programs, Airbus's A-380, and Lockheed Martin's F35.

Buy -

Seller Profiles 2

SELLER

Wayzata Investment Partners

Plymouth, Minnesota, United States

Investor


Category Private Equity Firm
Founded 2004
Size Small
Type Sector Agnostic
DESCRIPTION

Wayzata Investment Partners is a private equity group focused on acquiring controlling interests in companies through distressed debt investing. The Firm targets companies valued between $100 million and $1 billion. Wayzata was formed in 2004 and is based in Wayzata, Minnesota.


Deal Context for Seller #
Overall 6 of 22
Sector: Metals/Mining 1 of 1
Type: Add-on Acquisition 4 of 12
State: Illinois 3 of 6
Country: United States 6 of 22
Year: 2012 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-12-01 The Majestic Star Casino

Las Vegas, Nevada, United States

The Majestic Star Casino LLC is a regional gaming company that owns and operates three casino properties: Majestic Star and Majestic Star II located at Buffington Harbor in Gary, Indiana, Fitzgerald’s Hotel & Casino in Tunica County, Mississippi. Majestic Star’s properties are well established within their markets, each having been in operations for more than ten years.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-03-13 Special Devices

Moorpark, California, United States

Special Devices, Inc. is a designer and manufacturer of precision engineered pyrotechnics used in the automobile and aerospace industries. Capital Investors provided equity financing to support the leveraged recapitalization of the company.

Sell -
SELLER

aPriori Capital Partners

Investor Investor Investor


Category Private Equity Firm
Founded 1985
PE ASSETS 2.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

aPriori Capital Partners (formerly DLJ Merchant Banking Partners) is a middle-market private equity firm focused on middle-market buyouts in the US and Europe. Sectors of interest include healthcare, retail, consumer, energy, business services, and industrial. aPriori was originally established in 1985 and has offices in New York and Los Angeles.


Deal Context for Seller #
Overall 35 of 51
Sector: Metals/Mining 1 of 1
Type: Add-on Acquisition 15 of 22
State: Illinois 1 of 2
Country: United States 28 of 38
Year: 2012 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-12-16 Driven Brands

Charlotte, North Carolina, United States

Driven Brands is a parent company of automotive aftermarket brands across four distinct verticals: Repair & Maintenance, housing Meineke Car Care Centers; Paint & Collision, housing Maaco, CARSTAR, and ABRA; Distribution, housing 1-800-Radiator & A/C and Spire Supply; and Quick Lube, housing Take 5 Oil Change. Driven Brands was incorporated in 1972 and is based in Charlotte, North Carolina.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-02 Fougera Pharmaceuticals

Melville, New York, United States

Fougera Pharmaceuticals Inc. operates two primary divisions in the US focused on specialty pharmaceuticals in dermatology: Fougera, its generic dermatology medicines business, and PharmaDerm, its branded dermatology business. Founded in 1849, the Fougera division is the leading manufacturer and distributor of a wide range of topical products. The PharmaDerm division is dedicated to developing and commercializing novel prescription products to treat diseases and conditions of the skin – the largest organ of the human body.

Sell $1.5B