Partners Group has agreed to acquire a controlling stake in Dynacast International, which makes metal components for customers across the automotive, telecommunications, computing, consumer electronics and healthcare industries. The transaction has an overall enterprise value of $1.1 billion and is expected to close in February 2015.
Partners Group, the global private markets investment manager, has signed an agreement to acquire a controlling stake in Dynacast International on behalf of its clients. The transaction has an overall enterprise value of USD 1.1 billion and is expected to close in February 2015.
Founded nearly 80 years ago, Dynacast International is a global manufacturer of small, highly complex metal components. The company uses proprietary precision die-casting and metal injection molding (MIM) technologies to produce customized, high-volume components with complex shapes and tight tolerances. Dynacast is headquartered in Charlotte, North Carolina, and 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.
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.
Simon Newman, Chief Executive Officer of Dynacast, states: “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.”
Joel Schwartz, Managing Director at Partners Group in New York, adds: “We are really looking forward to working with Simon and the rest of Dynacast’s management team in this next stage of the company’s development. 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 & 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.
About Dynacast International Inc.
Dynacast works with organizations all over the world, helping bring their ideas to life with the highest quality precision engineered metal components on the planet. Customers can come from virtually any industry – consumer electronics, automotive, healthcare, or any other where only the very best is good enough. And each benefits from our almost 80 years’ of experience pioneering the techniques and technologies that have redefined the industry. It means that every customer receives insight and expertise that adds value at every stage of the design and manufacturing process. It’s why today, across multiple industries and multiple geographies, Dynacast is the name synonymous with precision metal components. Please visit www.dynacast.com to learn more.
About Partners Group
Partners Group is a global private markets investment management firm with over EUR 33 billion (over USD 40 billion) in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 700 people, is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of over CHF 7 billion (over USD 7 billion) and a major ownership by its partners and employees.