ITW Buys Speedline
Published: 08 November 2006
by Mike Buetow
NEW YORK – Illinois Tool Works Inc. continued its one-company consolidation spree, acquiring electronics manufacturing equipment supplier Speedline Technologies. Financial terms of the transaction were not disclosed and the deal is expected to be completed this quarter.
Speedline has been owned by KPS Special Situations Funds, a private equity group which bought the company from Cookson for roughly $10 million in 2003. Its brands include MPM, Electrovert, Accel and Camelot.
Speedline has recovered sharply from a loss of $48.2 million on sales of $127.3 million (coverted from pounds in today's values) in 2002. Circuits Assembly estimates the company had sales of $195 million in 2005, and is on track for double-digit growth this year.
After the June quarter, Speedline said its first-half sales grew 26% overall, with printers running 40% ahead of last year and soldering equipment sales up 51%.
At this time, Speedline chief executive Pierre De Villemejane is expected to stay with the company.
In a press statement, KPS managing principal David Shapiro said, "We believe that Speedline has found the perfect home in ITW and wish the best to all of Speedline's dedicated employees as they embark on this exciting chapter in the history of their company."
For ITW, this marks its second major purchase of an electronics supplier this year. In July, the conglomerate purchased Kester Solder, the solder paste supplier with a run rate of about $175 million. Through September 30, the company had completed 34 acquisitions totaling $895 million of annualized revenues.
The news was expected; without explicitly naming Speedline, Circuits Assembly had indicated on Monday that the company would be sold. In stories both on its Web site and in a blog, Circuits Assembly reported that Speedline had sought bids and its manufacturing sites had been visited by auditors.
