TriMas Stock

TriMas Corporation (TriMas) designs, develops, and manufactures a diverse set of products primarily for the consumer products, aerospace and industrial markets through its TriMas Packaging, TriMas Aerospace and Specialty Products groups.

Strategy

The key elements of the company’s strategy are to leverage the TriMas Business Model; invest in innovation; accelerate growth with strategic acquisitions; and foster a culture of kaizen and engagement.

Businesses

The company operates through three segments: Packaging, Aerospace, and Specialty Products.

Packaging

Packaging segment consists of TriMas Packaging, which includes the Rieke, Affaba & Ferrari, Taplast, Rapak, Intertech and Omega Plastics brands. TriMas Packaging is a leading designer, developer and manufacturer of specialty, highly-engineered polymeric and steel closure and dispensing systems for a range of end markets, including consumer packaging, life science and industrial markets. The company manufactures high-performance, value-added products that are designed to enhance its customers’ ability to store, transport, process and dispense various products.

TriMas Packaging designs and manufactures dispensing products (including foaming pumps, lotion and hand soap pumps, sanitizer pumps, beverage dispensers, perfume sprayers, nasal sprayers and trigger sprayers), polymeric and steel caps and closures (including food lids, flip-top closures, child resistance caps, drum and pail closures and flexible spouts), polymeric jar products, and fully integrated dispensers for fill-ready, flexible bag-in-box applications, for a variety of consumer product markets, including but not limited to, the beauty and personal care, home care, food and beverage, medical, pharmaceutical and nutraceutical, as well as industrial end markets.

In addition, TriMas Packaging, through its December 2021 acquisition of Omega Plastics and February 2022 acquisition of Intertech, designs and manufactures complex, precision injection molded components and assemblies for applications in the life sciences end market. The company’s capabilities and products include prototype production molds and custom, medical-related components, such as patient diagnostic test components, consumable vascular delivery, surgical devices and pharmaceutical closures.

TriMas Packaging has the capability of manufacturing the majority of the company’s products in North America, Europe or Asia, which allows it to evaluate manufacturing location decisions based on customer needs, timing, cost and capacity.

Marketing, Customers and Distribution

TriMas Packaging accesses its markets through direct sales to customers, as well as through leading distributors, where it has enjoyed favorable, long-standing relationships. The company employs commercial teams in North America, South America, Europe and Asia. At times, the company also uses third-party agents and distributors in its key geographic markets, as well as agents and distributors primarily to sell to container manufacturers and to users or fillers of containers.

TriMas Packaging's end customers include but are not limited to, consumer packaged goods, personal care, beauty and cosmetic, medical, pharmaceutical, nutraceutical, food and beverage, industrial, agricultural, chemical, and cleaning and sanitary supply companies. The company also provides products into applications used by warehouse clubs, e-retailers and fast food retailers. The company may provide products directly to the end customer, but the end customers may also specify that its products be provided to filling or packaging intermediary customers. In addition, the company provides products to major container manufacturers, and maintain a customer service center that provides technical support, as well as other technical assistance to customers.

TriMas Packaging has manufacturing and support facilities in the United States, Mexico, Brazil, the United Kingdom, Germany, Italy, Slovakia, China, India, Vietnam and Australia.

Competition

Depending on the product and customers served, the company’s competitors include Aptar, Bericap, Berry Global, Greif, Mold-Rite, Phoenix Closures, Silgan, Technocraft and other smaller private companies located in Asia.

Aerospace

Aerospace segment consists of TriMas Aerospace, which includes the Monogram Aerospace Fasteners (Monogram), Allfast Fastening Systems (Allfast), Mac Fasteners, RSA Engineered Products (RSA), Martinic Engineering (Martinic) and TFI Aerospace (TFI) brands. TriMas Aerospace is a leading designer and manufacturer of a diverse range of products, including, but not limited to, highly-engineered fasteners, collars, blind bolts, rivets, ducting and connectors for air management systems, and other highly-engineered machined parts and components, for use in focused markets within the aerospace industry. In general, these products are customer-specific and are manufactured utilizing customer-qualified and proprietary processes. The company’s brands are well established and recognized in their markets. Each of the company’s brands are long-term, certified suppliers of aerospace original equipment manufacturers (OEMs) or Tier 1 suppliers, and have been serving the aerospace industry for decades.

The company provides products for commercial, business jet, and military and defense aerospace applications and platforms with sales to OEMs, supply chain distributors, maintenance, repair and overhaul (MRO)/ aftermarket providers and tier one suppliers. The company’s customer-specified and/or qualified products are used in production of significant long-term aircraft programs, including several Boeing and Airbus commercial jetliner programs.

TriMas Aerospace's product offering includes a broad line of fastener products, including permanent threaded blind bolts, solid and blind rivets, standard screws and bolts manufactured to meet NAS, MS, AN and AS standards, collars, temporary fasteners and other specialty fasteners. TriMas Aerospace also manufactures and assembles complex, highly-engineered and proprietary ducting, connectors and related products for air management systems, and other complex machine-to-print parts for aerospace applications, including auxiliary power units, as well as electrical, hydraulic and pneumatic systems. In December 2021, the company acquired TFI Aerospace, a manufacturer and supplier of specialty fasteners used in a variety of applications, predominantly for the aerospace end market.

Marketing, Customers and Distribution

TriMas Aerospace serves both OEM and aftermarket customers on a wide variety of platforms. Given the focused nature of many of the company’s products, TriMas Aerospace relies upon a global sales and technical team that is knowledgeable of both OEM customers and the established network of independent distributors. Although the markets for fasteners are highly competitive, the company provides products and services primarily for specialized applications, and compete principally on technology, quality and service. TriMas Aerospace works directly with aircraft manufacturers to develop and test new products and improve existing products. TriMas Aerospace’s primary customers include OEMs, supply chain distributors, tier one suppliers and the United States government.

TriMas Aerospace's manufacturing facilities are located in the United States and Canada. Given the nature of the components TriMas Aerospace manufactures, it can ship products efficiently to Europe, South America and Asia.

Competition

Depending on the product and customers served, the company’s primary competitors include Ateliers de la Haute Garonne, Cherry Aerospace - Precision Castparts Corp., Howmet Aerospace, LISI Aerospace and Senior Aerospace, as well as a variety of aerospace and general industrial machined component manufacturers.

Specialty Products

Specialty Products segment consists of the company’s Norris Cylinder and Arrow Engine Company businesses.

TriMas' Norris Cylinder business is a leading designer, manufacturer and distributor of highly-engineered steel cylinders for use in industrial, heating, ventilation and air conditioning (HVAC), construction, health care and defense end markets. Norris Cylinder is a leading provider of a complete line of large, intermediate and small size, high and low-pressure steel cylinders for the transportation, storage and dispensing of compressed gases. Norris Cylinder’s large high-pressure seamless gas cylinders are used principally for shipping, storing and dispensing oxygen, nitrogen, argon, helium and other compressed gases. In addition, Norris Cylinder offers a complete line of steel cylinders used to contain and dispense acetylene gas for the welding and cutting industries. Norris Cylinder's products meet the rigorous standards required by the U.S. Department of Transportation (DOT) or International Standards Organization (ISO), which certifies a cylinder's adequacy to perform in specific applications.

Arrow Engine is a provider of natural gas powered wellhead engines, compressors and replacement parts, all engineered for use in oil and natural gas production and other industrial and commercial markets. As Arrow's engines can operate from the natural gas produced at the wellhead, the company’s Arrow is uniquely positioned to provide its products for remote pump jack installations. Arrow Engine distributes its products through a worldwide distribution network, primarily focused in the United States and Canada. Arrow Engine manufactures its own engine line and also offers a wide variety of spare parts for various industrial engines not manufactured by Arrow Engine.

Marketing, Customers and Distribution

The customers of the company’s Specialty Products segment predominantly operate in the industrial end markets, and to a lesser extent, the upstream oil and gas end markets. Given the focused nature of many of the company’s products, it relies upon a combination of a direct sales force and an established network of distributors with familiarity of the end-users. Norris Cylinder, for example, sells directly to customers and through distributors. The company’s primary customers include industrial gas producers and distributors, welding equipment distributors, and equipment manufacturers.

Competition

Norris Cylinder competes against Worthington, Beijing Tianhai Industry Co., Faber and Vitkovice Cylinders, but is the only steel cylinder manufacturer in the United States.

TriMas' Acquisition Strategy

TriMas views the pursuit of strategic acquisitions as core to augmenting its organic growth and achieving the company’s overarching corporate strategy. TriMas’ acquisition priority is to build out the company’s ackaging platform, continuing its initiative to increase TriMas’ position in packaging-related end markets, which comprises nearly 60% of consolidated net sales, as well as explore unique opportunities to build out its Aerospace platform. The company typically seeks to acquire adjacent product lines that expand its existing product offerings, gain access to new customers and end markets, expand its geographic footprint and/or capitalize on scale and cost efficiencies. From 2019 through 2022, TriMas has completed eight acquisitions and one divestiture.

Seasonality

Other than the company’s fourth quarter, which in past years has tended to be the lowest net sales quarter of the year given holiday shutdowns by certain of its customers and other customers deferring capital spending to the following year (year ended December 31, 2022).

History

TriMas Corporation was founded in 1986. The company was incorporated in 1986.