Form Technologies Secures $304 Million from Ares Management

Form Technologies Completes Major Acquisition

Form Technologies, Inc. has announced an exciting new chapter as Ares Management funds have acquired a majority of its common equity. This acquisition marks a significant moment in the company's journey, bringing in approximately $304 million in new equity capital. This funding is pivotal as it facilitates a substantial deleveraging of the company’s balance sheet.

Why the Acquisition Matters

With Ares Management involved, Form Technologies can now accelerate its strategic growth initiatives. The investment includes $154 million of common equity from notable investors such as Ares, the D. E. Shaw group, and Onex Credit, alongside $150 million of preferred equity from the D. E. Shaw group and Ripple Industries. This investment is expected to enhance Form Technologies’ operational capabilities and bolster its commercial strategy.

A Strong Global Presence

Form Technologies boasts a robust global footprint with 32 facilities situated in 22 countries. The company has demonstrated strong commercial momentum through an impressive array of diversified casting services at scale, focusing on die casting, investment casting, and metal injection molding. Recent investments in proprietary processes and engineering capabilities have helped the company improve its product design and manufacturing precision, serving nearly 2,000 organizations in critical end markets such as automotive and aerospace.

Leadership Insight

David Angell, the CEO of Form Technologies, expressed his pride in the company's strategic repositioning. He emphasized the team's dedication to operational excellence while consistently meeting customer needs. The partnership with Ares Management is anticipated to accelerate their commercial momentum and support their goals for continuous growth.

Ares Management: A Supportive Partner

Aaron Rosen, a Partner and Co-Head of Opportunistic Credit at Ares Management, shared his views on the company's trajectory since their initial investment in 2021. He highlighted the effectiveness of Form Technologies' solutions and engineering capabilities in achieving commercial success. Ares is keen to support Form Technologies in addressing the evolving needs of its diversified customer base across various key regions.

Expert Guidance Behind the Scenes

In the backdrop of this transaction, Jefferies LLC played the vital role of financial advisor for Form Technologies, while Kirkland & Ellis LLP provided legal counsel. Ares was supported by Evercore as their financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel.

About Form Technologies

Form Technologies stands as a global leader in the production of precision-engineered components. Annually, the company manufactures over five billion high-precision components utilizing innovative proprietary processes. With production facilities widely distributed and a dedicated workforce of over 7,500, Form Technologies is designed to provide tailored solutions that address its customers' complex challenges.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is recognized as a leading global alternative investment manager. The company specializes in providing diverse primary and secondary investment solutions across various asset classes, including credit, real estate, private equity, and infrastructure. With a focus on creating value for stakeholders and engaging with communities, Ares collaborates across its investment divisions to achieve consistent investment returns.

Frequently Asked Questions

What recent acquisition has Form Technologies undergone?

Form Technologies has been acquired by Ares Management funds, securing a majority of the company's common equity.

What is the total amount of new equity capital involved in this acquisition?

The acquisition involved approximately $304 million in new equity capital meant for strategic growth initiatives.

How many facilities does Form Technologies operate globally?

Form Technologies operates 32 facilities across 22 countries.

What markets does Form Technologies serve?

Form Technologies serves key markets such as automotive, aerospace, healthcare, and enterprise technology.

What is Ares Management’s focus as an investment manager?

Ares Management focuses on providing flexible capital to support businesses across credit, real estate, private equity, and infrastructure sectors.

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