Tinicum in $330m public-to-private deal

The New York investment firm of billionaire industrialist Derald Ruttenberg has agreed to acquire manufacturing company Penn Engineering for approximately $330m.

Publicly traded manufacturing company PennEngineering announced today that it has agreed to be acquired by New York investment firm Tinicum Capital Partners for approximately $330 million (€253 million).

The transaction has been approved by the company’s board of directors and is expected to be completed in the first half of 2005.

Founded in 1942, PennEngineering manufactures specialty fasteners and high performance motors, generating revenues of $191 million in fiscal 2003. According to documents filed with the Securities and Exchange Commission, chairman and chief executive officer Kenneth Swanstrom and his sister-in law Daryl Swanstrom, a director of the company, are the two largest shareholders of the company’s class A common stock.

Tinicum Capital Partners is part of Tinicum Inc., the holding company for billionaire industrialist Derald Ruttenberg, and has over $600 million in committed capital. His son, Eric Ruttenberg, runs the business and is married to news reporter Perri Peltz, daughter of socialite Lauren Veronis and stepdaughter of billionaire businessman Nelson Peltz.

Some of Tinicum’s disclosed transactions include:  the August 2003 acquisition of magazine fulfillment provider Hallmark Data Systems, the $40 million acquisition of HVAC manufacturer Selkirk from US Industries in 2002 and the $73 million acquisition of pump manufacturer Haskel International in 1999.