Toledo, Ohio — German auto component supplier Grammer is more than doubling its presence in North America with the acquisition of Toledo Molding & Die (TMD).
Once the $271 m purchase of Toledo-based TMD is finalised, Grammer will pick up another $300 m in sales in North America. It will also gain 10 plants in the US; another site in Mexico and 1,600 employees.
Grammer currently has about $250 m sales in North America, with five US plants, and two in Mexico. Globally, Amberg, Germany-based Grammer has 13,000 employees in 19 countries.
TMD will help it balance out its geographic footprint, Grammer officials said in a 22 May 2018 investor presentation. It now sees 68 % of its sales in the Europe, the Middle East and Africa (EMEA) region, 18 % in the Americas and 16 % in Asia Pacific. After the acquisition, the Americas will account for 28 % of sales, EMEA 59 % and the rest from Asia Pacific.
TMD, has injection moulding, blow moulding and mould making technology. It also brings a strong customer and technology mix, Grammer said in a news release.
'The TMD Group is one of the leading specialists in the development and production of innovative thermoplastic components in the North American automotive market,' Grammer noted.
'With this transaction, Grammer Group is systematically implementing its strategy of acquiring technology companies with the objective of enhancing its own product range and process expertise.'
About 71 % of TMD's sales are directly to automakers and 29 % to Tier 1 suppliers. Its customer list includes Fiat Chrysler, Ford, General Motors, Honda and Nissan. The German company said the range of customers also supplements its North American operations. This will enable it to 'additionally diversify its customer base.'
Toledo Molding makes door panels, pillars, glove boxes and centre console parts. It also makes, non-visible parts such as ducts, front end components, fans, coolant systems and resonators.
TMD was No. 40 in Plastics News' 2017 ranking of North American injection moulders with an estimated $230 million in sales; No. 27 in PN's 2017 ranking of blow moulders with an estimated $75 million in sales; and No. 37 among North American mould makers with an estimated $15 million in sales.
Grammer will finance the purchase with 'debt at attractive financing terms.'
It expects to close the deal in the third quarter of 2018.