Barnes Group to sell Associated Sprin and Hanggi businesses for $175M

Barnes Group announced that it has entered into a definitive agreement to sell its Associated Sprin and Hanggi businesses to One Equity Partners. The transaction is valued at $175M, inclusive of a $15M seller promissory note due in 24 months. Expected net cash proceeds of $150M will be used to reduce debt incurred from the strategic acquisition of MB Aerospace in August 2023. Barnes remains committed to achieving a Net Debt to EBITDA ratio, as defined in its credit agreements, of 3.0x or lower by the end of 2024 and reaffirms its long-term leverage goal of 2.5x by 2025. Associated Spring and Hanggi are leaders and innovators in engineered spring and precision metal component manufacturing, progressive stamping, micro-stamping, and fine blanking. The brands are part of Barnes’ Motion Control Solutions strategic business unit within the Industrial Segment and serve automotive, general industrial, and other markets. Combined, the businesses had approximately $200M in revenues over the last twelve months with over 800 employees worldwide and manufacturing operations in the United States, Mexico, Brazil, Switzerland, and Singapore. The transaction is expected to close early 2024 subject to regulatory and other customary closing conditions. Barnes leadership will provide additional details on the company’s Q4 and Full Year 2023 earnings call on February 16. BofA Securities served as financial advisor and Foley & Lardner served as legal counsel to Barnes.