~$304 Million of
New Equity Capital to Support Deleveraging and Accelerate Company's
Strategic Growth Initiatives
CHARLOTTE, N.C., Jan. 22,
2025 /PRNewswire/ -- Form Technologies, Inc. ("Form
Technologies" or the "Company"), a global leader in the production
of precision-engineered components, today announced that Ares
Management funds ("Ares") have acquired a majority of the Company's
common equity. In connection with the transaction, Form
Technologies has substantially deleveraged its balance sheet and
received approximately $304 million
in new equity capital, comprising $154
million of common equity from investors including Ares, the
D. E. Shaw group and Onex Credit, as
well as $150 million of preferred
equity from the D. E. Shaw group and Ripple Industries. The new
capital is expected to support additional investment in Form
Technologies' leading operational capabilities and accelerate the
Company's commercial strategy.
With a robust global footprint of 32 facilities across 22
countries, Form Technologies has built strong commercial momentum
through its ability to offer diversified casting services at scale,
with key competencies in die casting, investment casting and metal
injection molding. In recent years, the Company has invested
significantly in its proprietary processes and engineering
capabilities to support product design and manufacturing with a
higher level of precision for its customers. Form Technologies has
also implemented important enhancements to its commercial
organization in that time and has accelerated the success of new
customer programs, increasing the Company's customer count to
nearly 2,000 organizations across key end markets, including
automotive, aerospace, healthcare and enterprise technology.
"Over the past two years, we have undertaken a platform-wide
strategic repositioning that has solidified Form Technologies as a
global leader in precision-engineered parts," said David Angell, Chief Executive Officer of Form
Technologies. "I am very proud of the work our team has done to
deliver on our operational objectives while continuing to meet our
customers' needs. We are excited to move forward with additional
strategic support from Ares as we seek to build on our commercial
momentum, expand our presence in key regions and drive long-term
growth."
"Since our initial investment in 2021, we have observed the
acceleration of Form Technologies' commercial success through its
differentiated solutions-based offering and engineering
excellence," said Aaron Rosen,
Partner and Co-Head of Opportunistic Credit at Ares Management. "We
believe that under David's leadership, Form Technologies is
well-positioned to address the growing needs of its diversified
customer base across key regions and sectors. We look forward to
the exciting opportunities ahead as we support the team's goals for
driving revenue growth and value creation."
Jefferies LLC served as financial advisor and Kirkland &
Ellis LLP served as legal counsel to the Company. Evercore served
as financial advisor and Paul, Weiss, Rifkind, Wharton &
Garrison LLP served as legal counsel to Ares.
About Form Technologies
Form Technologies is a leading global producer of
precision-engineered components with complex geometries and tight
tolerances. Utilizing proprietary processes and engineering
expertise, the company manufactures over five billion
high-precision components annually, serving diverse end markets
worldwide. With 32 manufacturing facilities across 22 countries,
and a global team of over 7,500 employees, Form Technologies
provides customized solutions to meet its customers' most demanding
challenges.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global
alternative investment manager offering clients complementary
primary and secondary investment solutions across the credit, real
estate, private equity and infrastructure asset classes. We seek to
provide flexible capital to support businesses and create value for
our stakeholders and within our communities. By collaborating
across our investment groups, we aim to generate consistent and
attractive investment returns throughout market cycles. As of
September 30, 2024, Ares Management
Corporation's global platform had approximately $464 billion of assets under management with more
than 3,100 employees operating across North America, Europe, Asia
Pacific and the Middle
East. For more information, please visit
www.aresmgmt.com.
Forward-Looking Statements
The Company has included statements in this press release that
constitute "forward-looking statements." As a general matter,
forward looking statements are those focused on future or
anticipated events or trends, expectations and beliefs including,
among other things, the Company's expectations with respect to its
business, strategic plans, investments, including investments in
its operational capabilities, and its financial condition. Such
statements are intended to be identified by using words such as
"believe," "expect," "intend," "estimate," "anticipate," "will,"
"plan" and similar expressions in connection with any discussion of
future operating or financial performance. Not all forward-looking
statements in this press release may contain one or more of these
identifying terms. Several factors could cause actual results to
differ materially from those contained in any forward-looking
statement, such as factors related to our ability to execute our
strategic plans, to realize benefits from our investments in our
operational capabilities and to service or refinance our
indebtedness. Any forward-looking statements are and will be based
upon the Company's then-current expectations, estimates and
assumptions regarding future events and are applicable only as of
the dates of such statements, and the Company undertakes no
obligation to update them. Readers are cautioned not to rely on
such forward-looking statements.
Contacts
Form Technologies
marketingformtechnologies@formtechnologies.com
Ares Management
Jacob Silber, +1-212-301-0376
Brennan O'Toole, +1-212-301-0391
media@aresmgmt.com
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