Ares Management Enhances Form Technologies with Strategic Acquisition and New Capital

In a significant move within the manufacturing sector, Ares Management Corporation has acquired a majority of the common equity in Form Technologies, Inc. This acquisition is coupled with a substantial injection of equity capital amounting to approximately $304 million, aimed at supporting the company's deleveraging efforts and enhancing its strategic growth initiatives.

Financial Details of the Acquisition

The deal involves a robust financial strategy, where $154 million in common equity has been raised through investors, including Ares, the D. E. Shaw group, and Onex Credit, with an additional $150 million secured as preferred equity from the D. E. Shaw group and Ripple Industries. This financial support is anticipated to bolster Form Technologies' operational capabilities and expedite the execution of its commercial strategy.

Company Background and Growth

Form Technologies stands out as a leader in producing precision-engineered components, boasting a global presence with 32 facilities spread across 22 countries. The company has established itself as a front-runner by providing diverse casting services, including die casting, investment casting, and metal injection molding. With recent investments in proprietary processes and enhanced engineering capabilities, Form Technologies has significantly raised its quality of product design and manufacturing precision, which directly benefits its clientele.

Over the past years, the company has seen remarkable growth, expanding its customer base to nearly 2,000 organizations, with notable players in automotive, aerospace, healthcare, and enterprise technology sectors.

Strategic Vision for the Future

David Angell, the CEO of Form Technologies, expressed his enthusiasm about the acquisition, stating, "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. 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."

Aaron Rosen, a partner at Ares Management, reflected on Ares' journey with Form Technologies since their initial investment in 2021, highlighting the acceleration of the company’s commercial success and expressing confidence in Form's potential to meet the diverse needs of its global customer base.

Financial Advisory Team

Jefferies LLC played a pivotal role as financial advisor for Form Technologies, while Kirkland & Ellis LLP provided legal counsel. Ares Management was aided by Evercore as its financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel.

Looking Ahead

As Form Technologies prepares to leverage this new capital and strategic partnership, the anticipation for its growth trajectory remains high. The manufacturing company is set to foster innovation, enhance operational efficiency, and further expand its global footprint, paving the way for long-term success and sustainability in a competitive market.

In conclusion, the acquisition by Ares Management not only brings in capital but also marks the beginning of an exciting chapter for Form Technologies, as it gears up for growth, adaptability, and leadership in precision-engineered parts manufacturing.

For more details about Form Technologies and their offerings, please visit their official website.

About Form Technologies

Form Technologies specializes in producing high-precision components and utilizes proprietary engineering methods to meet the demands of diverse end markets. Their global workforce, exceeding 7,500 employees, operates 32 manufacturing facilities, ensuring efficiency and innovation in manufacturing processes.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a prominent global alternative investment manager, providing clients with a range of investment solutions across various asset classes. As of September 30, 2024, Ares Management boasts approximately $464 billion in assets under management, demonstrating its extensive reach and impact within the investment community.