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Textron Acquires Flexalloy

9 April 1999

Textron Acquires Flexalloy; Textron Fastening Systems Further Expands into Distribution and Vendor Managed Inventory

    PROVIDENCE, R.I.--April 8, 1999--Textron Inc. announced today the acquisition of Flexalloy, a distributor and provider of vendor managed inventory (VMI) services for the North American fastener market. Vendor managed inventory is a business process whereby a company manages the procurement and supply of an original equipment manufacturers'(OEM's) materials in inventory, and includes such competencies as optimized distribution and procurement networks, just-in-time delivery, and value-added inventory management systems. Revenues of Flexalloy for its most recent fiscal year were approximately $185 million. Terms of the transaction were not disclosed.
    Flexalloy will become part of Textron Fastening Systems' market-leading fastener operations in North America and will significantly strengthen its existing capabilities in vendor managed inventory. With approximately 300 customers, Flexalloy offers complementary, value-added services in this area, including sourcing and purchasing expertise, just-in-time delivery capabilities, fastener engineering, quality assurance testing, and kitting and assembly services.
    "Many OEMs are looking towards vendor managed inventory services to provide higher efficiencies, better quality, and reduced inventory. Flexalloy President Andrew Rayburn and his management team's strength and industry expertise will be a great asset as Textron Fastening Systems increases its presence in this critical, high growth market," said Textron President and COO John Janitz. "The combination of Textron Fastening Systems' market-leading products and Flexalloy's premier service capabilities in distribution, inventory procurement and fastener management, allows us to offer a full range of products and services to our customers," he added.
    With headquarters and its central distribution center in Streetsboro, Ohio, Flexalloy has ten additional distribution facilities throughout the US, Canada and Mexico, which provide close proximity to Textron Fastening Systems' North American customers. Flexalloy serves the heavy-truck, automotive, turf care, construction equipment and structural fabrication industries.
    With annualized revenues of over $2 billion, Textron Fastening Systems (TFS) is the global leader in engineered fastening systems and assemblies serving the automotive, industrial, consumer, construction, aerospace and inventory management industries. A part of Textron's Industrial segment, TFS has 93 locations in 18 countries, and serves customers in over 40 countries worldwide.
    Textron Inc. is a $10 billion, global, multi-industry company with market-leading operations in Aircraft, Automotive, Industrial and Finance.