Form Technologies: Ares Management's Strategic Acquisition

Form Technologies, a global leader in precision-engineered components, has announced its acquisition by Ares Management funds. The transaction, valued at approximately $304 million, includes a sophisticated two-tier approach with $154 million in common equity and $150 million in preferred equity. This strategic move brings significant implications for both entities, as Form Technologies' robust global footprint and diversified casting services at scale position it as a key player in the precision-engineered components industry.

Form Technologies' market position is solid, with its global footprint enabling efficient production and distribution. The company's focus on precision-engineered components serves high-growth sectors, such as automotive (EV transition), aerospace (recovery and modernization trends), and healthcare (aging demographics and technological advancement). For Ares Management, this acquisition aligns with their strategy of investing in market-leading industrial companies with strong operational capabilities and growth potential.

Form Technologies' manufacturing capabilities represent a strategic advantage in the precision engineering sector, particularly through its integrated approach to die casting, investment casting, and metal injection molding. This diversification is crucial as different industries require varying levels of precision and cost-effectiveness. The company's recent operational enhancements are timely given current industry trends, such as increasing demand for high-precision components in electric vehicles and advanced aerospace applications, growing need for complex medical device components, and rising requirements for sophisticated enterprise technology hardware components.

With Ares' backing and the new capital injection, Form Technologies is well-positioned to further enhance its operational capabilities and potentially capture additional market share in high-growth segments. This acquisition allows Form Technologies to expand its presence in key regions and drive long-term growth, ultimately strengthening its competitive position in the precision-engineered components industry.

In conclusion, Form Technologies' acquisition by Ares Management is a strategic move that strengthens both entities' positions in the precision-engineered components industry. With its robust global footprint, diversified casting services, and strong market position, Form Technologies is well-equipped to drive growth and value creation under Ares' guidance. As the industry continues to evolve, this strategic partnership will be crucial in navigating the dynamic landscape and capturing new opportunities.