TriMas, a Bloomfield Hills-based manufacturer of products for customers in the consumer products, aerospace, industrial, petrochemical, and oil and gas end markets, has entered into a definitive agreement to sell its Lamons business to First Reserve, a private equity firm with offices in Connecticut, Texas, and London, for $135 million in cash.
“A key part of TriMas’ overarching strategy is to reposition our portfolio of businesses by investing in innovation and programmatic M&A to accelerate long-term growth, predominantly in our packaging and aerospace segments,” says Thomas Amato, president and CEO of TriMas.
“Our Lamons management team has completed a remarkable turnaround over the past few years, streamlining its manufacturing and distribution footprint and improving operational throughput, which in turn has resulted in higher sales and operating performance. As Lamons moves into the next phase of growth and development, we believe this business will benefit from First Reserve’s focus and expertise in energy-related end markets. I am pleased that we have secured a buyer for which Lamons will be an ideal fit.”
Lamons provides industrial sealing and fastener solutions used in the petrochemical, petroleum refining, midstream energy transportation, upstream oil and gas, metropolitan water, and wastewater management end markets. The company currently is part of TriMas’ specialty products segment and generated about $186 million in net sales for the 12 months ending Sept. 30. TriMas will report Lamons’ results of operations as discontinued operations beginning in the fourth quarter.
The closing is expected to occur by the end of the first quarter of 2020. BofA Securities is serving as financial adviser and has led the sale process, while Jones Day is serving as outside legal counsel for TriMas. Current Capital is serving as financial adviser to First Reserve, and Vinson and Elkins is serving as its outside legal counsel.
TriMas has about 4,000 employees in 16 countries. Its businesses are in three segments – packaging, aerospace, and specialty products.
First Reserve is a global private equity investment firm focused on energy. It has been in the business for more than 35 years and has raised about $32 billion of aggregate capital since inception. It has completed more than 650 transactions, and its portfolio companies have operated on six continents.