Barnes Group Announces Strategic Sale of Associated Spring™ and Hänggi™ Businesses

Bristol, Conn. - Barnes Group Inc. (NYSE: B), a global provider of highly engineered products and innovative solutions, has recently entered into a definitive agreement to sell its Associated Spring™ and Hänggi™ businesses. The sale is part of Barnes Group's ongoing strategy to optimize its portfolio and achieve long-term profitable growth. The transaction, valued at $175 million, will enable Barnes Group to reduce debt and focus on its industry-leading Aerospace business. The sale of Associated Spring™ and Hänggi™ businesses to One Equity Partners signifies an important step in Barnes Group's transformation strategy. Over the past year, the company has been implementing a comprehensive business transformation strategy to drive improved growth, profitability, and cash flow. The divestiture of these businesses is a significant move towards rationalizing the Industrial segment of Barnes Group's portfolio and rebalancing it towards the Aerospace business. Thomas J. Hook, President and Chief Executive Officer of Barnes Group, expressed his confidence in the transaction, stating, "Associated Spring™ and Hänggi™ are solid businesses with a long heritage and blue-chip customer base. We are confident that One Equity will bring the dedicated focus and necessary resources to grow this business." The sale will also enable Barnes Group to pay down debt, resulting in lower interest expense and meaningful tax benefits. Associated Spring™ and Hänggi™ are leaders and innovators in engineered spring and precision metal component manufacturing, offering services such as progressive stamping, micro-stamping, and fine blanking. These businesses serve various markets, including automotive and general industrial, with manufacturing operations in multiple countries. One Equity Partners, a private equity firm with a focus on the industrial sector, will acquire Associated Spring™ and Hänggi™ businesses. Leveraging their extensive experience and expertise, One Equity Partners aims to expand the business through organic growth initiatives and transformational acquisitions. The sale of these businesses will enable Barnes Group to shift its portfolio towards markets with higher growth and margin opportunities. Following the transaction, the Aerospace segment will account for a majority of Barnes Group's consolidated revenues and an even larger percentage of its earnings. The company's exposure to the automotive industry will also be significantly reduced. The transaction is expected to close in early 2024, subject to regulatory approvals and customary closing conditions. Barnes Group's leadership will provide further details on the company's Q4 and Full Year 2023 earnings call. Barnes Group Inc. leverages its world-class manufacturing capabilities and market-leading engineering to develop advanced processes, automation solutions, and applied technologies for various industries. With a history of pioneering excellence, Barnes Group delivers exceptional value to customers through its advanced manufacturing capabilities and cutting-edge industrial technologies. One Equity Partners is a middle-market private equity firm that focuses on the industrial, healthcare, and technology sectors in North America and Europe. The firm seeks to build market-leading companies through transformative business combinations, and it has a proven track record of generating long-term value for its partners. In conclusion, the sale of Barnes Group's Associated Spring™ and Hänggi™ businesses marks a significant milestone in the company's strategic transformation. By optimizing its portfolio and focusing on high-growth markets, Barnes Group is positioning itself for long-term success and delivering value to its shareholders.