The purchase price was not disclosed. The purchase agreement is planned to be finalised in the fourth quarter of 2010.

According to a press release published by the insolvency administrators, Dr Beck & Partner, this purchase includes the company’s two German offices in Velden and Fürth, Bavaria, and plants in Austria. The sale of Ecka’s French, Japanese and Bahrain offices are still being negotiated.

“Platinum Equity has the necessary knowledge of the metal powder industry and has the necessary human and financial resources to stabilize the business operations of ECKA group,” the press release said.
This is the second PM purchase undertaken by Platinum Equity, which acquired SCM Metal Products, Inc, a producer of copper-based powder and pastes in October 2008. At the time, Jacob Kotzubei, the Platinum partner who led the SCM transaction, said: “We have a strong track record of helping companies like SCM reach their full potential.”

Since the acquisition, SCM has expanded its product portfolio to produce electrolytic copper powders, and has itself acquired the brazing alloys division of insert and injection moulding specialist Tricon Industries in June 2009.

Platinum Equity also has experience of managing metals specialists. In August 2008 it sold PNA Group, a processor and distributor of metals products, to Reliance Steel & Aluminum Co in a transaction valued at approximately US$1.1 billion. Platinum acquired PNA Group in May 2006 and, reportedly improved business through a combination of operational initiatives and add-on acquisitions. In October 2007 it sold ESM Group, a supplier to the steel industry, to SKW Metallurgie following a reorganization in which Platinum established ESM as a standalone company. In October 2007 Platinum acquired Ryerson Inc. one of the largest metals service center providers in North America with revenue of approximately US$6 billion. According to Platinum, Ryerson is currently in the process of executing a turnaround plan focused on improving customer service, operational excellence and profitability.

In all, Platinum Equity has completed nearly 100 acquisitions with more than US$27.5 billion in aggregate annual revenue at the time of acquisition.

ECKA Granules manufactures non-ferrous metal powders including aluminium, magnesium, copper, calcium, tin, lead, zinc, silicon powders and their alloys.