TriMas Corp.

Our stable outlook on TriMas Corp. reflects its good market position, relatively steady S&P Global Ratings-adjusted EBITDA margin, and consistent cash flow generation, which will likely enable it to pursue acquisitions and share repurchases while maintaining adjusted debt to EBITDA of less than 3x. We could lower our rating on TriMas over the next 12 months if it pursues larger-than-expected debt-financed acquisitions or if an economic slowdown leads to a material deterioration in its credit measures. This could occur if, for instance, weakness in its end markets reduces its EBITDA margins while it pursues acquisitions such that its adjusted debt to EBITDA rises above 3x. We could also lower our rating if TriMas' liquidity weakens or the headroom under its

...The elevated demand for cleaning applications will likely support an improvement in the operating performance of TriMas' packaging segment (about 63% of overall revenue) over the next 12 months, though we expect the pace of its expansion to moderate. The company's packaging segment has been benefiting from the surge in demand for its dispensers, pumps, caps, and closures used for personal hygiene, cleaning, and sanitation purposes amid the coronavirus pandemic. We expect this elevated demand to persist for the next 12 months, though we anticipate the demand will moderate as vaccines become widely available. Over the longer-term, we think that consistent demand for TriMas' traditional food and beverage applications, beauty, personal care, and home care products will support revenue growth in the low-to mid-single digit percent range. We believe the company's efforts to partially move its production to the U.S. and implement dual sourcing (U.S. and international) will help it improve its...

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