Platinum Equity finalises purchase of Ecka Granules
December 8, 2010
Following an announcement in September (see ipmd.net news) the sale of Ecka Granules to US investment firm Platinum Equity has now been finalised. Platinum Equity announced that it has acquired substantially all material assets of Ecka Granules, the German based manufacturer and distributor of metal powders, based in Fürth. The acquisition which includes copper, aluminum and magnesium powder manufacturing plants and sales offices will, upon registration of all share transfers include Australia, Austria, Bahrain, China, Germany, Slovenia, Switzerland, the U.K. and the United States.
Platinum also owns SCM Metal Products, the US manufacturer and distributor of metal powders with production facilities in the United States and China. Platinum acquired SCM in November 2008.
“Ecka Granules is synonymous with quality products and leading-edge technology, and the brand aligns perfectly with SCM’s customer-focused business model,” said Jacob Kotzubei, the partner at Platinum who led the Ecka Granules transaction. “This acquisition is part of an ongoing strategy to expand our presence in the metal powders space. Ecka Granules is an excellent strategic fit in our portfolio.”
Ecka Granules and SCM are both expected to benefit from shared ownership, though each company will continue marketing under its own brand. SCM President Barton White will serve as CEO of both companies.
Mr. White noted that by combining SCM and Ecka Granules’ technical capabilities and complementary footprints, and supporting them both with Platinum’s operational and financial resources, this acquisition creates tremendous potential for growth.
“We can now offer customers a unique, international combination of manufacturing plants, technical support and direct sales and marketing channels in the United States, Asia and Europe,” explained Mr. White. “By expanding our reach and moving closer to customers around the world, we can decrease lead times and optimize our plants to improve the supply chain and ultimately increase value.”
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