Hartford Business Journal

18 HARTFORDBUSINESS.COM | NOVEMBER 29, 2021 By Sean Teehan steehan@hartfordbusiness.com B arnes Group is branching out. A decade ago, the Bristol-based aerospace and industrial manufacturer operated purely as a maker and distributor of springs, nuts and other metallic components. But seven years worth of acquisitions and a shift in strategy to focus more on intellectual property development have repositioned the company, President and CEO Patrick Dempsey said. "We own the design, we own the original concept, we are then bringing that into production through our manufacturing expertise," said Dempsey, who recently sat down with the Hartford Business Journal in the company's boardroom in Bristol for a wide-ranging interview. "What we're looking to do is capture the entire product life cycle of the different products and services that we take to market." While the pandemic hit Barnes' aerospace segment hard and stymied its industrial business, the company offset some of the harm through a pivot toward making parts for medical devices like inhalers and EpiPens, Dempsey said. Meanwhile, the CEO said aerospace has been showing signs of recovery, as an increasing number of passengers resume regular travel. During the third quarter, Barnes Group, which is publicly traded, reported $27.9 million in profits, or 55 cents per diluted share, compared to $15.4 million, or 30 cents per diluted share, a year ago. The company's stock price, which has been relatively stable over the past year, has been trading around $46 during the month of November. With a new logo and website in tow, Dempsey said Barnes Group is ready to push further with the strategy of increasing IP development, vertically integrating the products it makes and sells, and diversifying its industrial offerings to include more advanced technology products. "If you look at Barnes, our history is manufacturing, and it's something that is at the core of what we do," Dempsey said. "We're not walking away from manufacturing, what we are doing is building layers of competitive advantage." Diversification play Founded in 1857, Barnes Group is an iconic Connecticut manufacturer and a stalwart employer in the city of Bristol. Manufacturing still remains a key focus, but in 2012 — a year before Dempsey became CEO — the company pivoted toward a greater focus on industrial markets and away from distribution. It sold its distribution unit a year later to New York-based MSC Industrial Direct Co. for $550 million. Today, Barnes' industrial business accounts for about 65% of revenues, while aerospace about 35%. "We made a strategic decision to divest our distribution business and take the proceeds of that and redeploy them to our aerospace and our industrial business," Dempsey said. "We also made a clear decision to move more toward intellectual property and taking control of our own destiny." Barnes has employed an acquisition strategy in expanding its industrial segment and intellectual property, Dempsey said. For example, in 2012 it spent $235 million to buy Synventive Molding Solutions, a Massachusetts-based company that makes hot runner Strategic Shift With brand refresh, iconic Bristol manufacturer Barnes Group completes pivot toward IP development Barnes Group President and CEO Patrick Dempsey said seven years' worth of acquisitions and a shift in strategy to focus more on intellectual property development have repositioned his company. HBJ PHOTO | STEVE LASCHEVER

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