Barnes Group Acquires DE-STA-CO Manufacturing.BRISTOL, Conn. -- Barnes Group Inc. (NYSE NYSE See: New York Stock Exchange : B) today announced that it has acquired DE-STA-CO Manufacturing of Troy, Michigan Troy is a city in Oakland County of the U.S. state of Michigan. It is a suburb of Detroit. As of the 2000 census, the city had a total population of 80,959, the 12th largest city in Michigan by population. , the world leader in the design and manufacture of reed valves Reed valves restrict flow of gases to a single direction and consist of thin flexible metal or fiberglass strips fixed on one end that open and close upon changing pressures across opposite sides of the valve. They operate in a similar manner to heart valves. and shock discs. DE-STA-CO was formerly an operating division of Dover Resources Inc., a subsidiary of Dover Corporation Dover Corporation (NYSE: DOV) is a Fortune 500 and S&P 500 manufacturer of specialized industrial products and equipment within six segments. It was historically best known for its former business of the manufacture of elevators from the late 19th Century through the 1990s. (NYSE: DOV DOV Data-Over-Voice DOV Degree of Variation DOV Defenders of Valor (gaming group) DOV Disbursing Officer Voucher DOV Director of Orbital Verification (Hubble Telescope) DOV Diaphragm-Operated Valve ). The acquisition, which closed today, adds approximately $28 million in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales to Barnes Group Inc.'s Associated Spring unit. DE-STA-CO has a total of five manufacturing locations, three in Michigan, and one each in Thailand and the United Kingdom. Barnes Group paid $16.9 million in cash for DE-STA-CO. "This is a great bolt-on acquistion. DE-STA-CO will lead Associated Spring's expanded presence in the growing reed valve marketplace, while increasing our international manufacturing footprint for these products, including Asia," said Edmund M. Carpenter, President and Chief Executive Officer. "At the same time, DE-STA-CO will bring to Associated Spring industry-leading engineering expertise and a number of proprietary manufacturing capabilities. We believe that this acquisition will be slightly accretive to our 2005 earnings." Reed valves are custom-engineered critical components used in compressors which are, in turn, used in residential and industrial air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. and refrigeration refrigeration, process for drawing heat from substances to lower their temperature, often for purposes of preservation. Refrigeration in its modern, portable form also depends on insulating materials that are thin yet effective. applications, as well as air conditioners in automobiles. Shock discs are spring-like components used in vehicle ride control systems. "The addition of DE-STA-CO to Associated Spring creates a leading supplier of highly engineered reed valves, and will complement our existing reed valve business in Brazil," said Richard P. McCorry, President, Associated Spring. "We will blend the strengths of both operations, including a broadened product line and deepened engineering resources, to service our global customer base from our combined manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. worldwide," McCorry added. "With the DE-STA-CO transaction, Barnes Group has now completed nine acquisitions in the last five years, adding approximately $370 million in sales to our company. We will continue to seek opportunities that will create sustainable, profitable growth and help build lasting value for our stockholders," concluded Carpenter. Barnes Group Inc. (www.barnesgroupinc.com) is a diversified international manufacturer of precision metal components and assemblies and a distributor of industrial supplies, serving a wide range of markets and customers. Founded in 1857 and headquartered in Bristol, Connecticut Bristol is a city located in Hartford County, Connecticut, 20 miles (32 km) southwest of Hartford. According to 2006 Census Bureau estimates, the population of the city is 61,353. , Barnes Group consists of three businesses with 2003 sales of $891 million: Associated Spring, one of the world's largest manufacturers of precision mechanical and nitrogen gas springs and a global supplier of retaining rings, reed valves and injection-molded plastic components; Barnes Aerospace, a manufacturer and repairer of highly engineered assemblies and components for commercial and military aircraft engines, airframes, and land-based industrial gas turbines; and Barnes Distribution, an international, full-service distributor of maintenance, repair and operating supplies. Over 5,800 dedicated employees at more than 50 locations worldwide contribute to Barnes Group Inc.'s success. This release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements. Investors are encouraged to consider these risks and uncertainties as described within the Company's periodic filings with the Securities and Exchange Commission, including the following: the ability of the Company to integrate newly acquired businesses and to realize acquisition synergies on schedule; changes in market demand for the types of products and services produced and sold by Barnes Group; the Company's success in identifying, and attracting customers in, new markets; the Company's ability to develop new and enhanced products to meet customers' needs timely; the effectiveness of the Company's marketing and sales programs; increased competitive activities that could adversely affect customer demand for the Company's products; the availability of raw materials at prices that allow the Company to make and sell competitive products; changes in economic, political and public health conditions, worldwide and in the locations where the Company does business; interest and foreign exchange rate fluctuations; and regulatory changes. |
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