Kaynar Technologies Planning Public Offering

Kaynar Technologies Inc., which makes nuts, bolts and other fasteners for the aerospace industry, said Thursday that it plans to go public with a initial offering that would raise up to $32 million.

Kaynar will offer 1.8 million shares and its major lender and shareholder, General Electric Capital Corp., will offer 200,000 shares, according to a filing with the Securities and Exchange Commission.

The Fullerton company will have a total of 8.6 million shares outstanding after the offering, and GECC’s stake in the company will be reduced to 60.5% from 79.5%.

Created in 1993 to acquire the fastener assets of bankrupt Microdot Inc., Kaynar has built itself into a leading manufacturer of specialty fasteners, fastening systems and related components for the commercial aircraft and defense markets. The company also makes related products for the automotive, electronic and other industrial markets.

Kaynar mainly supplies Boeing Co., General Electric Co., Pratt & Whitney Aircraft, Airbus Industries, Lockheed Martin Corp, McDonnell Douglas Corp. and Rolls Royce PLC.

Its direct sales to Boeing, GE and Pratt & Whitney accounted for 18%, 12% and 8%, respectively, of its sales last year, according to the SEC document. Over a two-year period, its operating income more than doubled to $12.8 million last year from $5 million and sales increased 80% to $99 million last year from $55.1 million in 1994.

The company said in its filing that it expects business to pick up even more because the airline companies have projected considerable growth in the coming years. “We should be able to participate in their increased production,” said David A. Werner, Kaynar’s executive vice president.

Assuming an initial public offering price of $15 a share, Kaynar expects net proceeds of $24.4 million or, if underwriters buy an over-allotment, $28.6 million. It plans to use $17.9 million to pay off GECC loans and to use the rest for general corporate purposes.