Tikehau Capital Has Entered Into Exclusive Discussions to Sell Brown Europe to STS Metals, a Portfolio Company of Tinicum
Tikehau Capital, the global alternative asset manager, is pleased to announce that STS Metals, a manufacturer of titanium, stainless steel, nickel-based and other specialty alloys, has entered into exclusive discussions to acquire its portfolio company Brown Europe, a specialist in wire drawing of high-performance alloys for the aerospace industry.
Irwindale, CA, July 30, 2024 --(PR.com)-- Brown Europe is a leading European player in its markets, specialising in the production of wires and bars in alloy steels, stainless steels and superalloys, mainly for the manufacturing of fasteners used in aerospace applications. The company operates two facilities in France: one in Brive-la-Gaillarde and another in Laval-de-Cere. Over the past 39 years of operations, Brown Europe has developed specialised expertise in wire drawing and processing. The company is positioned as a long-term partner to major fastener manufacturers.
Since its acquisition by Tikehau Capital in June 2021 as part of its private equity aerospace strategy, Brown Europe has significantly expanded its business and contributed to the post-COVID recovery of the aerospace sector. This growth, which has been particularly sustained in Europe, has been accompanied by a strengthening of the management team, local recruitment and significant investment in the company's buildings and industrial facilities.
Now at a new level of development, Brown Europe is well positioned to benefit from a new strategic partner, as it seeks to diversify its customer base internationally, expand its product portfolio and capabilities and reduce supply chain risks. STS Metals’ ambitions for the company align perfectly with these goals.
“This transaction would mark the first divestment of Tikehau Capital’s private equity strategy dedicated to aerospace, confirming our leadership in the aerospace and defence sector, where we invest in niche players with leading market positions and support their growth. Brown Europe's development over the past three years underlines our commitment to making strategic investments that create substantial value for our stakeholders, including our customers and Brown Europe's teams,” said Emmanuel Laillier, Head of Private Equity at Tikehau Capital, and Fabien Roualdes, Executive Director within Tikehau Capital's private equity aerospace strategy.
“We are excited to acquire Brown Europe, as it is well matched with our business model and the other operations that make up STS Metals. Brown Europe shares a similar reputation with STS Metals in providing value to their customers through superior service and operational performance. This transaction would allow us to provide enhanced range and customer service for our products in both Europe and the rest of the world,” said David Beddome, CEO of STS Metals.
Press contacts:
Tikehau Capital: Valérie Sueur – +33 1 40 06 39 30
UK – Prosek Partners: Philip Walters – +44 (0) 7773 331 589
USA – Prosek Partners: Trevor Gibbons – +1 646 818 9238
press@tikehaucapital.com
STS Metals: Joe Kerkhove - +1 626 969 6711
jkerkhove@sierraalloys.com
Brown Europe: Gilles Gregory - +335 65 33 84 84
gilles.gregory@brown-europe.com
Shareholder and investor contacts Tikehau Capital:
Louis Igonet – +33 1 40 06 11 11
Théodora Xu – +33 1 40 06 18 56
shareholders@tikehaucapital.com
About Tikehau Capital
Tikehau Capital is a global alternative asset management group with €44.4 billion of assets under management (at 31 March 2024). Tikehau Capital has developed a wide range of expertise across four asset classes (private debt, real assets, private equity and capital markets strategies) as well as multi-asset and special opportunities strategies. Tikehau Capital is a founder-led team with a differentiated business model, a strong balance sheet, proprietary global deal flow and a track record of backing high quality companies and executives. Deeply rooted in the real economy, Tikehau Capital provides bespoke and innovative alternative financing solutions to companies it invests in and seeks to create long-term value for its investors, while generating positive impacts on society. Leveraging its strong equity base (€3.2 billion of shareholders’ equity at 31 December 2023), the firm invests its own capital alongside its investor-clients within each of its strategies. Controlled by its managers alongside leading institutional partners, Tikehau Capital is guided by a strong entrepreneurial spirit and DNA, shared by its 778 employees (at 31 March 2024) across its 16 offices in Europe, Middle East, Asia and North America. Tikehau Capital is listed in compartment A of the regulated Euronext Paris market (ISIN code: FR0013230612; Ticker: TKO.FP). For more information, please visit: www.tikehaucapital.com.
About STS Metals
STS Metals manufactures titanium, stainless steel, nickel-based and other speciality alloys for the aerospace and defense industry. The company forges and hot-rolls bar, plate, sheet and wire in sizes and shapes that enable weight and cost reduction in the aerospace supply chain. The company’s commitment to quality and service has earned approvals from leading aerospace OEMs. Currently comprised of four operating companies — Sierra Alloys, TSI Titanium, Sierra Sheet and Plate and Brown-Pacific — STS Metals plans to grow by expanding its product offering, developing new customer relationships and acquiring complementary businesses.
About Tinicum
Tinicum manages a diversified group of manufacturing, distribution, industrial technology and specialty infrastructure companies. The firm’s heritage, as good stewards of high-quality businesses, dates back to the 1940s. Tinicum seeks to be a trusted partner to business owners and executives who share in a belief that long-term prosperity can be created by teams of capable, honest people working together and investing diligently to fulfil the potential of great businesses. Investments can be made in both private and public companies, with minority or majority ownership stakes, through a long-lived investment partnership that currently has $2.4 billion of committed capital.
Since its acquisition by Tikehau Capital in June 2021 as part of its private equity aerospace strategy, Brown Europe has significantly expanded its business and contributed to the post-COVID recovery of the aerospace sector. This growth, which has been particularly sustained in Europe, has been accompanied by a strengthening of the management team, local recruitment and significant investment in the company's buildings and industrial facilities.
Now at a new level of development, Brown Europe is well positioned to benefit from a new strategic partner, as it seeks to diversify its customer base internationally, expand its product portfolio and capabilities and reduce supply chain risks. STS Metals’ ambitions for the company align perfectly with these goals.
“This transaction would mark the first divestment of Tikehau Capital’s private equity strategy dedicated to aerospace, confirming our leadership in the aerospace and defence sector, where we invest in niche players with leading market positions and support their growth. Brown Europe's development over the past three years underlines our commitment to making strategic investments that create substantial value for our stakeholders, including our customers and Brown Europe's teams,” said Emmanuel Laillier, Head of Private Equity at Tikehau Capital, and Fabien Roualdes, Executive Director within Tikehau Capital's private equity aerospace strategy.
“We are excited to acquire Brown Europe, as it is well matched with our business model and the other operations that make up STS Metals. Brown Europe shares a similar reputation with STS Metals in providing value to their customers through superior service and operational performance. This transaction would allow us to provide enhanced range and customer service for our products in both Europe and the rest of the world,” said David Beddome, CEO of STS Metals.
Press contacts:
Tikehau Capital: Valérie Sueur – +33 1 40 06 39 30
UK – Prosek Partners: Philip Walters – +44 (0) 7773 331 589
USA – Prosek Partners: Trevor Gibbons – +1 646 818 9238
press@tikehaucapital.com
STS Metals: Joe Kerkhove - +1 626 969 6711
jkerkhove@sierraalloys.com
Brown Europe: Gilles Gregory - +335 65 33 84 84
gilles.gregory@brown-europe.com
Shareholder and investor contacts Tikehau Capital:
Louis Igonet – +33 1 40 06 11 11
Théodora Xu – +33 1 40 06 18 56
shareholders@tikehaucapital.com
About Tikehau Capital
Tikehau Capital is a global alternative asset management group with €44.4 billion of assets under management (at 31 March 2024). Tikehau Capital has developed a wide range of expertise across four asset classes (private debt, real assets, private equity and capital markets strategies) as well as multi-asset and special opportunities strategies. Tikehau Capital is a founder-led team with a differentiated business model, a strong balance sheet, proprietary global deal flow and a track record of backing high quality companies and executives. Deeply rooted in the real economy, Tikehau Capital provides bespoke and innovative alternative financing solutions to companies it invests in and seeks to create long-term value for its investors, while generating positive impacts on society. Leveraging its strong equity base (€3.2 billion of shareholders’ equity at 31 December 2023), the firm invests its own capital alongside its investor-clients within each of its strategies. Controlled by its managers alongside leading institutional partners, Tikehau Capital is guided by a strong entrepreneurial spirit and DNA, shared by its 778 employees (at 31 March 2024) across its 16 offices in Europe, Middle East, Asia and North America. Tikehau Capital is listed in compartment A of the regulated Euronext Paris market (ISIN code: FR0013230612; Ticker: TKO.FP). For more information, please visit: www.tikehaucapital.com.
About STS Metals
STS Metals manufactures titanium, stainless steel, nickel-based and other speciality alloys for the aerospace and defense industry. The company forges and hot-rolls bar, plate, sheet and wire in sizes and shapes that enable weight and cost reduction in the aerospace supply chain. The company’s commitment to quality and service has earned approvals from leading aerospace OEMs. Currently comprised of four operating companies — Sierra Alloys, TSI Titanium, Sierra Sheet and Plate and Brown-Pacific — STS Metals plans to grow by expanding its product offering, developing new customer relationships and acquiring complementary businesses.
About Tinicum
Tinicum manages a diversified group of manufacturing, distribution, industrial technology and specialty infrastructure companies. The firm’s heritage, as good stewards of high-quality businesses, dates back to the 1940s. Tinicum seeks to be a trusted partner to business owners and executives who share in a belief that long-term prosperity can be created by teams of capable, honest people working together and investing diligently to fulfil the potential of great businesses. Investments can be made in both private and public companies, with minority or majority ownership stakes, through a long-lived investment partnership that currently has $2.4 billion of committed capital.
Contact
STS Metals
Joe Kerkhove
626-969-6711
stsmetals.com
Joe Kerkhove
626-969-6711
stsmetals.com
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